VVY.AS WACC - Weighted Average Cost of Capital
The WACC of Vivoryon Therapeutics NV (VVY.AS) is 6.8%.
| Range | Selected | |
| Cost of equity | 4.9% - 8.7% | 6.8% |
| Tax rate | 0.4% - 0.7% | 0.55% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.9% - 8.7% | 6.8% |
| Category | Low | High |
| Long-term bond rate | 2.6% | 3.1% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.45 | 0.84 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.9% | 8.7% |
| Tax rate | 0.4% | 0.7% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.9% | 8.7% |
| Selected WACC | 6.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| VVY.AS | Vivoryon Therapeutics NV | 0 | 1.11 | 1.11 |
| ABVX.PA | Abivax SA | 0.22 | 2.06 | 1.7 |
| ALBPS.PA | Biophytis SA | 2.64 | 0.52 | 0.14 |
| BGBIO.OL | Bergenbio ASA | 0.02 | 1.72 | 1.69 |
| HPHA.DE | Heidelberg Pharma AG | 0.1 | 0.76 | 0.69 |
| MAB.WA | Mabion SA | 0.02 | 0.88 | 0.86 |
| POXEL.PA | Poxel SA | 1.54 | -0.64 | -0.25 |
| SANION.ST | Saniona AB | 0.01 | -0.34 | -0.34 |
| SIGHT.PA | Gensight Biologics SA | 0.73 | 0.37 | 0.21 |
| TILS.L | Tiziana Life Sciences PLC | 0.01 | -1.34 | -1.34 |
| Low | High | |
| Unlevered beta | 0.19 | 0.76 |
| Relevered beta | 0.18 | 0.76 |
| Adjusted relevered beta | 0.45 | 0.84 |
VVY.AS'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 VVY.AS:
cost_of_equity (6.80%) = risk_free_rate (2.85%) + equity_risk_premium (5.60%) * adjusted_beta (0.45) + 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.