VVY.AS WACC - Weighted Average Cost of Capital

The WACC of Vivoryon Therapeutics NV (VVY.AS) is 6.2%.

The Cost of Equity of Vivoryon Therapeutics NV (VVY.AS) is 6.15%.

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

	Range	Selected
Cost of equity	4.80% - 7.50%	6.15%
Tax rate	0.40% - 0.70%	0.55%
Cost of debt	5.00% - 5.00%	5.00%
WACC	4.8% - 7.5%	6.2%

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	0.44	0.65

Additional risk adjustments	0.0%	0.5%
Cost of equity	4.80%	7.50%

Tax rate	0.40%	0.70%
Debt/Equity ratio	0	0
Cost of debt	5.00%	5.00%

After-tax WACC	4.8%	7.5%


Selected WACC	6.2%

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 (6.15%) = risk_free_rate (2.85%) + equity_risk_premium (5.60%) * adjusted_beta (0.44) + 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.