ORPHA.CO WACC - Weighted Average Cost of Capital
The WACC of Orphazyme A/S (ORPHA.CO) is 8.2%.
| Range | Selected | |
| Cost of equity | 9.4% - 13.6% | 11.5% |
| Tax rate | 1.1% - 3.3% | 2.2% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.2% - 9.2% | 8.2% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 1.31 | 1.61 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.4% | 13.6% |
| Tax rate | 1.1% | 3.3% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.2% | 9.2% |
| Selected WACC | 8.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ORPHA.CO | Orphazyme A/S | 1.02 | -0.47 | -0.23 |
| ABVX.PA | Abivax SA | 0.25 | 1.68 | 1.35 |
| ALBPS.PA | Biophytis SA | 2.3 | 0.84 | 0.26 |
| ALLR.ST | Allarity Therapeutics A/S | 0.03 | 1.07 | 1.05 |
| BGBIO.OL | Bergenbio ASA | 0.01 | 2.19 | 2.17 |
| IVA.PA | Inventiva SA | 0.12 | 0.95 | 0.84 |
| IVACC.ST | Intervacc AB | 0 | 1.61 | 1.61 |
| MAB.WA | Mabion SA | 0.21 | 0.99 | 0.82 |
| NANO.PA | Nanobiotix SA | 0.34 | 1.49 | 1.12 |
| SIGHT.PA | Gensight Biologics SA | 0.67 | 0.81 | 0.49 |
| XSPRAY.ST | XSpray Pharma AB (publ) | 0.13 | 1.19 | 1.06 |
| Low | High | |
| Unlevered beta | 0.84 | 1.06 |
| Relevered beta | 1.46 | 1.91 |
| Adjusted relevered beta | 1.31 | 1.61 |
ORPHA.CO'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 ORPHA.CO:
cost_of_equity (11.50%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (1.31) + 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.