VVY.AS
Vivoryon Therapeutics NV
Price:  
1.73 
EUR
Volume:  
45,292.00
Germany | Biotechnology
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VVY.AS WACC - Weighted Average Cost of Capital

The WACC of Vivoryon Therapeutics NV (VVY.AS) is 5.9%.

The Cost of Equity of Vivoryon Therapeutics NV (VVY.AS) is 5.90%.
The Cost of Debt of Vivoryon Therapeutics NV (VVY.AS) is 5.00%.

Range Selected
Cost of equity 4.70% - 7.10% 5.90%
Tax rate 0.40% - 0.70% 0.55%
Cost of debt 5.00% - 5.00% 5.00%
WACC 4.7% - 7.1% 5.9%
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 0.42 0.58
Additional risk adjustments 0.0% 0.5%
Cost of equity 4.70% 7.10%
Tax rate 0.40% 0.70%
Debt/Equity ratio 0 0
Cost of debt 5.00% 5.00%
After-tax WACC 4.7% 7.1%
Selected WACC 5.9%

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 (5.90%) = risk_free_rate (2.85%) + equity_risk_premium (5.60%) * adjusted_beta (0.42) + 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.