VVY.AS WACC - Weighted Average Cost of Capital

The WACC of Vivoryon Therapeutics NV (VVY.AS) is 6.8%.

The Cost of Equity of Vivoryon Therapeutics NV (VVY.AS) is 6.85%.

The Cost of Debt of Vivoryon Therapeutics NV (VVY.AS) is 5.50%.

	Range	Selected
Cost of equity	5.30% - 8.40%	6.85%
Tax rate	0.40% - 0.70%	0.55%
Cost of debt	4.00% - 7.00%	5.50%
WACC	5.3% - 8.4%	6.8%

WACC

VVY.AS WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.34	0.62

Additional risk adjustments	1.0%	1.5%
Cost of equity	5.30%	8.40%

Tax rate	0.40%	0.70%
Debt/Equity ratio	0	0
Cost of debt	4.00%	7.00%

After-tax WACC	5.3%	8.4%


Selected WACC	6.8%

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 (6.85%) = risk_free_rate (2.85%) + equity_risk_premium (5.60%) * adjusted_beta (0.34) + 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.