XSPRAY.ST WACC - Weighted Average Cost of Capital
The WACC of XSpray Pharma AB (publ) (XSPRAY.ST) is 6.4%.
| Range | Selected | |
| Cost of equity | 5.0% - 8.1% | 6.55% |
| Tax rate | 20.6% - 20.9% | 20.75% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.9% - 7.9% | 6.4% |
| Category | Low | High |
| Long-term bond rate | 2.5% | 3.0% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.48 | 0.76 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.0% | 8.1% |
| Tax rate | 20.6% | 20.9% |
| Debt/Equity ratio | 0.07 | 0.07 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.9% | 7.9% |
| Selected WACC | 6.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| XSPRAY.ST | XSpray Pharma AB (publ) | 0.07 | 1.34 | 1.27 |
| DMYD B.ST | Diamyd Medical AB | 0.02 | 0.43 | 0.42 |
| HPHA.DE | Heidelberg Pharma AG | 0.1 | 0.76 | 0.7 |
| MAB.WA | Mabion SA | 0.02 | 0.88 | 0.86 |
| ORY.MC | Oryzon Genomics SA | 0.05 | 0.57 | 0.55 |
| POXEL.PA | Poxel SA | 1.54 | -0.64 | -0.29 |
| SANION.ST | Saniona AB | 0.01 | -0.34 | -0.34 |
| SCLP.L | Scancell Holdings PLC | 0.21 | -0.11 | -0.09 |
| TILS.L | Tiziana Life Sciences PLC | 0.01 | -1.34 | -1.34 |
| XBRANE.ST | Xbrane Biopharma AB | 0.5 | 1.19 | 0.85 |
| Low | High | |
| Unlevered beta | 0.21 | 0.61 |
| Relevered beta | 0.22 | 0.64 |
| Adjusted relevered beta | 0.48 | 0.76 |
XSPRAY.ST'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 XSPRAY.ST:
cost_of_equity (6.55%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (0.48) + 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.