POLN.SW WACC - Weighted Average Cost of Capital
The WACC of Polyphor AG (POLN.SW) is 6.6%.
| Range | Selected | |
| Cost of equity | 5.0% - 7.5% | 6.25% |
| Tax rate | 16.6% - 17.9% | 17.25% |
| Cost of debt | 7.0% - 10.8% | 8.9% |
| WACC | 5.3% - 7.9% | 6.6% |
| Category | Low | High |
| Long-term bond rate | 1.6% | 2.1% |
| Equity market risk premium | 4.7% | 5.7% |
| Adjusted beta | 0.5 | 0.67 |
| Additional risk adjustments | 1.0% | 1.5% |
| Cost of equity | 5.0% | 7.5% |
| Tax rate | 16.6% | 17.9% |
| Debt/Equity ratio | 0.41 | 0.41 |
| Cost of debt | 7.0% | 10.8% |
| After-tax WACC | 5.3% | 7.9% |
| Selected WACC | 6.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| POLN.SW | Polyphor AG | 0.41 | 0.62 | 0.46 |
| ADXN.SW | Addex Therapeutics Ltd | 0.05 | 0.29 | 0.28 |
| ALONX.PA | Onxeo SA | 0.3 | 3.34 | 2.68 |
| ALPHA.PA | Pharnext SA | 19402.47 | -0.69 | 0 |
| BONEH.HE | BBS-Bioactive Bone Substitutes Oyj | 3.15 | 1.73 | 0.48 |
| BOTHE.BR | Bone Therapeutics SA | 8.55 | 0.32 | 0.04 |
| CNWK.DE | Co.don AG | 0.3 | 1.23 | 0.99 |
| MOLN.SW | Molecular Partners AG | 0.02 | 0.43 | 0.42 |
| OKYO.L | OKYO Pharma Ltd | 1.13 | 0.71 | 0.37 |
| RTALB.IS | RTA Laboratuvarlari Biyolojik Urunler Ilac ve Makine Sanayi Ticaret AS | 0.03 | 0.33 | 0.32 |
| Low | High | |
| Unlevered beta | 0.35 | 0.44 |
| Relevered beta | 0.25 | 0.51 |
| Adjusted relevered beta | 0.5 | 0.67 |
POLN.SW'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 POLN.SW:
cost_of_equity (6.25%) = risk_free_rate (1.85%) + equity_risk_premium (5.20%) * adjusted_beta (0.5) + risk_adjustments (1.25%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.