VITR.ST WACC - Weighted Average Cost of Capital
The WACC of Vitrolife AB (VITR.ST) is 6.3%.
| Range | Selected | |
| Cost of equity | 5.6% - 7.5% | 6.55% |
| Tax rate | 22.8% - 24.4% | 23.6% |
| Cost of debt | 4.0% - 6.8% | 5.4% |
| WACC | 5.3% - 7.3% | 6.3% |
| Category | Low | High |
| Long-term bond rate | 2.5% | 3.0% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.6 | 0.65 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.6% | 7.5% |
| Tax rate | 22.8% | 24.4% |
| Debt/Equity ratio | 0.11 | 0.11 |
| Cost of debt | 4.0% | 6.8% |
| After-tax WACC | 5.3% | 7.3% |
| Selected WACC | 6.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| VITR.ST | Vitrolife AB | 0.11 | 0.44 | 0.41 |
| ABC.L | Abcam PLC | 0.08 | 0.39 | 0.37 |
| ALNOV.PA | Novacyt SA | 0.34 | 1.45 | 1.15 |
| BAVA.CO | Bavarian Nordic A/S | 0.01 | 0.51 | 0.51 |
| BIO.DE | Biotest AG | 0.4 | -0.09 | -0.07 |
| BIOG B.ST | Biogaia AB | 0 | 0.38 | 0.38 |
| ONCO.ST | Oncopeptides AB | 0.46 | -0.42 | -0.31 |
| PHARM.AS | Pharming Group NV | 0.18 | 1.51 | 1.33 |
| PROB.ST | Probi AB | 0.15 | 0.1 | 0.09 |
| VLA.PA | Valneva SE | 0.53 | 1.47 | 1.05 |
| Low | High | |
| Unlevered beta | 0.37 | 0.45 |
| Relevered beta | 0.4 | 0.48 |
| Adjusted relevered beta | 0.6 | 0.65 |
VITR.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 VITR.ST:
cost_of_equity (6.55%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (0.6) + 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.