ONC.L
Oncimmune Holdings PLC
Price:  
1.14 
GBP
Volume:  
406,954.00
United Kingdom | Biotechnology
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ONC.L WACC - Weighted Average Cost of Capital

The WACC of Oncimmune Holdings PLC (ONC.L) is 7.7%.

The Cost of Equity of Oncimmune Holdings PLC (ONC.L) is 8.10%.
The Cost of Debt of Oncimmune Holdings PLC (ONC.L) is 8.10%.

Range Selected
Cost of equity 6.70% - 9.50% 8.10%
Tax rate 3.90% - 7.20% 5.55%
Cost of debt 7.00% - 9.20% 8.10%
WACC 6.7% - 8.7% 7.7%
WACC

ONC.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.46 0.65
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.70% 9.50%
Tax rate 3.90% 7.20%
Debt/Equity ratio 3.85 3.85
Cost of debt 7.00% 9.20%
After-tax WACC 6.7% 8.7%
Selected WACC 7.7%

ONC.L'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 ONC.L:

cost_of_equity (8.10%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.46) + 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.