ISOFOL.ST WACC - Weighted Average Cost of Capital
The WACC of Isofol Medical AB (publ) (ISOFOL.ST) is 6.5%.
| Range | Selected | |
| Cost of equity | 7.5% - 10.7% | 9.1% |
| Tax rate | 20.6% - 20.9% | 20.75% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.7% - 7.3% | 6.5% |
| Category | Low | High |
| Long-term bond rate | 2.5% | 3.0% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.97 | 1.17 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.5% | 10.7% |
| Tax rate | 20.6% | 20.9% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.7% | 7.3% |
| Selected WACC | 6.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ISOFOL.ST | Isofol Medical AB (publ) | 1.1 | 1.23 | 0.66 |
| AZT.OL | Arcticzymes Technologies ASA | 0.01 | 0.61 | 0.6 |
| B8F.DE | Biofrontera AG | 1.3 | 0.33 | 0.16 |
| BIO.MC | Biosearch SA | 0 | 1 | 1 |
| BIOPOR.CO | Bioporto A/S | 0.02 | 0.5 | 0.5 |
| BML.WA | Biomed Lublin Wytwornia Surowic i Szczepionek SA | 0.04 | 0.41 | 0.4 |
| CIR.L | Circassia Group PLC | 0.01 | 1.87 | 1.86 |
| COX.PA | Nicox SA | 0.97 | 0.98 | 0.56 |
| HBC.OL | Hofseth Biocare ASA | 0.14 | 0.54 | 0.48 |
| IVACC.ST | Intervacc AB | 0 | 1.57 | 1.57 |
| TNG.PA | Transgene SA | 0.02 | 0.86 | 0.85 |
| Low | High | |
| Unlevered beta | 0.56 | 0.66 |
| Relevered beta | 0.96 | 1.25 |
| Adjusted relevered beta | 0.97 | 1.17 |
ISOFOL.ST's CAPM model and how its cost of Equity is calculated
The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.
This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.
Here’s how we figure out the cost of equity for ISOFOL.ST:
cost_of_equity (9.10%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (0.97) + risk_adjustments (0.25%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.