VLA.PA WACC - Weighted Average Cost of Capital

The WACC of Valneva SE (VLA.PA) is 7.3%.

The Cost of Equity of Valneva SE (VLA.PA) is 6.90%.

The Cost of Debt of Valneva SE (VLA.PA) is 8.50%.

	Range	Selected
Cost of equity	5.70% - 8.10%	6.90%
Tax rate	2.10% - 3.70%	2.90%
Cost of debt	7.00% - 10.00%	8.50%
WACC	6.1% - 8.6%	7.3%

WACC

VLA.PA WACC calculation

Category	Low	High

Long-term bond rate	3.0%	3.5%
Equity market risk premium	5.8%	6.8%
Adjusted beta	0.46	0.6

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.70%	8.10%

Tax rate	2.10%	3.70%
Debt/Equity ratio	0.48	0.48
Cost of debt	7.00%	10.00%

After-tax WACC	6.1%	8.6%


Selected WACC	7.3%

VLA.PA'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 VLA.PA:

cost_of_equity (6.90%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * 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.