IVACC.ST WACC - Weighted Average Cost of Capital
The WACC of Intervacc AB (IVACC.ST) is 7.4%.
| Range | Selected | |
| Cost of equity | 5.4% - 9.5% | 7.45% |
| Tax rate | 20.6% - 20.9% | 20.75% |
| Cost of debt | 7.0% - 40.3% | 23.65% |
| WACC | 5.4% - 9.5% | 7.4% |
| Category | Low | High |
| Long-term bond rate | 2.5% | 3.0% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.47 | 0.9 |
| Additional risk adjustments | 0.5% | 1.0% |
| Cost of equity | 5.4% | 9.5% |
| Tax rate | 20.6% | 20.9% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 7.0% | 40.3% |
| After-tax WACC | 5.4% | 9.5% |
| Selected WACC | 7.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| IVACC.ST | Intervacc AB | 0 | 1.51 | 1.51 |
| ABVX.PA | Abivax SA | 0.21 | 2.04 | 1.75 |
| FARN.L | Faron Pharmaceuticals Oy | 0.04 | 0.16 | 0.16 |
| IVA.PA | Inventiva SA | 0.14 | 0.77 | 0.69 |
| NANO.PA | Nanobiotix SA | 0.23 | 1.47 | 1.24 |
| POXEL.PA | Poxel SA | 1.41 | -0.63 | -0.3 |
| PROB.ST | Probi AB | 0.15 | 0.1 | 0.09 |
| SIGHT.PA | Gensight Biologics SA | 0.96 | 0.41 | 0.23 |
| TILS.L | Tiziana Life Sciences PLC | 0.01 | -1.34 | -1.34 |
| VVY.AS | Vivoryon Therapeutics NV | 0 | 1.08 | 1.07 |
| Low | High | |
| Unlevered beta | 0.2 | 0.85 |
| Relevered beta | 0.21 | 0.85 |
| Adjusted relevered beta | 0.47 | 0.9 |
IVACC.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 IVACC.ST:
cost_of_equity (7.45%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (0.47) + risk_adjustments (0.75%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.