Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Heidelberg Pharma AGXTER:HPHA -1.92%32 WACC % is 8.12% as of Jul. 16, 2026, which is 50% above its 10-year median of 5.41. GuruFocus rates XTER:HPHA with a GF Score™ of 32/100 and a GF Value™ of €0.96 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,421 Biotechnology companies, Heidelberg Pharma AG ranks better than 62.07% on this metric.
As of today (2026-07-16), Heidelberg Pharma AG's weighted average cost of capital is 8.12%%. Heidelberg Pharma AG's ROIC % is -203.77% (calculated using TTM income statement data).
Heidelberg Pharma AG earns returns that do not match up to its cost of capital. It will destroy value as it grows.
For a comprehensive WACC calculation, please access the WACC Calculator.
Heidelberg Pharma AG (XTER:HPHA) WACC % Explanation
Because it costs money to raise capital. A firm that generates higher ROIC % than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Heidelberg Pharma AG's weighted average cost of capital is 8.12%%. Heidelberg Pharma AG's ROIC % is -203.77% (calculated using TTM income statement data).
Heidelberg Pharma AG earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
1. GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding latest one-year quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together.
For companies that report quarterly, GuruFocus combines all of the most recent year's quarterly debt data from the beginning of the year to the year-end and calculates the average.
For companies that report semi-annually, GuruFocus combines all of the most recent year's semi-annual debt data from the start of the year to the year-end and calculates the average.
For companies that report annually, GuruFocus combines the beginning and ending annual debt data from the most recent year and then calculates the average.
2. The WACC formula discussed above does not include Preferred Stock. Please adjust if preferred stock is considered.
3. (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
4. GuruFocus uses the latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Biotechnology subindustry, Heidelberg Pharma AG's WACC %, along with its competitors' market caps and WACC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Heidelberg Pharma AG WACC % vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Heidelberg Pharma AG's WACC % distribution charts can be found below:
* The bar in red indicates where Heidelberg Pharma AG's WACC % falls into.
The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. The WACC is commonly referred to as the firm's cost of capital. Generally speaking, a company's assets are financed by debt and equity. WACC is the average of the costs of these sources of financing, each of which is weighted by its respective use in the given situation. By taking a weighted average, we can see how much interest the company has to pay for every dollar it finances.
WACC
=
E
/
(E + D)
*
Cost of Equity
+
D
/
(E + D)
*
Cost of Debt
*
(1 - Tax Rate)
1. Weights:
Generally speaking, a company's assets are financed by debt and equity. We need to calculate the weight of equity and the weight of debt.
The market value of equity (E) is also called "Market Cap". As of today, Heidelberg Pharma AG's market capitalization (E) is €119.300 Mil.
The market value of debt is typically difficult to calculate, therefore, GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding the latest one-year quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of May. 2026, Heidelberg Pharma AG's latest one-year quarterly average Book Value of Debt (D) is €0.0982 Mil.
a) weight of equity = E / (E + D) = 119.300 / (119.300 + 0.0982) = 0.9992
b) weight of debt = D / (E + D) = 0.0982 / (119.300 + 0.0982) = 0.0008
2. Cost of Equity:
GuruFocus uses Capital Asset Pricing Model (CAPM) to calculate the required rate of return. The formula is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
a) GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate. It is updated daily. The current risk-free rate is 3.0465%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default.
b) Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. Heidelberg Pharma AG's beta is 0.8457.
c) (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
Cost of Equity = 3.0465% + 0.8457 * 6% = 8.1207%
3. Cost of Debt:
GuruFocus uses latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
As of May. 2026, Heidelberg Pharma AG's interest expense (positive number) was €0.004 Mil. Its total Book Value of Debt (D) is €0.0982 Mil.
Cost of Debt = 0.004 / 0.0982 = 4.0733%.
4. Multiply by one minus TTM Tax Rate:
GuruFocus uses the most recent TTM Tax Expense divided by the most recent TTM Pre-Tax Income to calculate the tax rate. The calculated TTM tax rate is limited to between 0% and 100%. If the calculated tax rate is higher than 100%, it is set to 100%. If the calculated tax rate is less than 0%, it is set to 0%.
The latest calculated TTM Tax Rate = 1.475 / -31.627 = -4.66%, which is less than 0%. Therefore it's set to 0%.
Heidelberg Pharma AG's Weighted Average Cost Of Capital (WACC) for Today is calculated as:
WACC
=
E / (E + D)
*
Cost of Equity
+
D / (E + D)
*
Cost of Debt
*
(1 - Tax Rate)
=
0.9992
*
8.1207%
+
0.0008
*
4.0733%
*
(1 - 0%)
=
8.12%
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Heidelberg Pharma AG (XTER:HPHA) has a WACC % of 8.12% as of Jul. 16, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Heidelberg Pharma AG and its competitors. This is 50% above median its historical median of 5.41. According to the industry distribution chart, Heidelberg Pharma AG ranks #539 out of 1421 companies in the Biotechnology industry, placing it in the top 37.9%.
Is Heidelberg Pharma AG's WACC % too high?
Heidelberg Pharma AG's current WACC % of 8.12% is 50% above median its 10-year median of 5.41. The Biotechnology industry median WACC % is 10.01. Heidelberg Pharma AG's value of 8.12% is 18.9% below this industry median. Based on the distribution chart, Heidelberg Pharma AG ranks #539 out of 1421 companies in the Biotechnology industry, which is above the industry midpoint. Overall, Heidelberg Pharma AG has a GF Score™ of 32/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Heidelberg Pharma AG's WACC % compare to VRTX and REGN?
According to the Biotechnology industry distribution chart, Heidelberg Pharma AG ranks #539 out of 1421 companies for WACC %. This puts Heidelberg Pharma AG in the upper half of its industry. The industry median WACC % is 10.01. Heidelberg Pharma AG's value of 8.12% is 18.9% below this benchmark. While the company's 10-year median is 5.41 vs. the industry median of 10.01, Heidelberg Pharma AG has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good WACC % for a Biotechnology company?
The median WACC % among Biotechnology companies is 10.01, based on 1,421 companies in the industry. Companies in the top quartile (top 25%) have a WACC % significantly above this median, while those in the bottom quartile fall well below. However, WACC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Heidelberg Pharma AG's current WACC % of 8.12% is 18.9% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high WACC % mean?
A high WACC % can signal that a stock is expensive relative to its fundamentals. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Heidelberg Pharma AG and its competitors. For the Biotechnology industry, the median WACC % is 10.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Heidelberg Pharma AG's current WACC % is 8.12%, which is 50% above median its own 10-year median of 5.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Heidelberg Pharma AG stock overvalued right now?
Based on GuruFocus' analysis, Heidelberg Pharma AG (XTER:HPHA) is currently considered Significantly Overvalued. The stock's GF Value™ is €0.96, compared to a current price of €2.55 — trading 165.6% above its estimated fair value. The current WACC % is 8.12%, which is 50% above median its 10-year median of 5.41 and 18.9% below the Biotechnology industry median of 10.01. Heidelberg Pharma AG's overall GF Score™ is 32/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is WACC % calculated?
WACC % is calculated from a company's financial statements. For Heidelberg Pharma AG (XTER:HPHA), the current WACC % is 8.12% as of Jul. 16, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Heidelberg Pharma AG (XTER:HPHA) Overvalued in 2026?
Based on GuruFocus' analysis, Heidelberg Pharma AG stock appears to be overvalued.
The current stock price of €2.55 is trading 165.6% above its estimated GF Value™ of €0.96.
GuruFocus considers Heidelberg Pharma AG to be Significantly Overvalued.
Key valuation signals for XTER:HPHA:
WACC %: 8.12% (50% above median its 10-year median of 5.41)
GF Value™: €0.96 vs. price of €2.55 (165.6% above fair value)
Industry Position: 18.9% below the Biotechnology median (#539 of 1421)
No single metric tells the full story. See the XTER:HPHA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Heidelberg Pharma AG is a biopharmaceutical company developing oncology treatments through antibody drug conjugates (ADCs), which combine antibody specificity with toxin potency to selectively target and kill cancer cells. The Company researches, develops, and produces these ADCs, and has built an ADC toolbox using various antibodies and payloads to address multiple cancers and overcome tumor resistance. Its activities focus on its proprietary ATAC technology based on Amanitin, the toxin of the death cap mushroom, leveraging its biological mechanism as a novel cancer therapy. The ATAC platform is used to develop proprietary ADC candidates and is also applied in collaborations with third parties.
32GF Score
Get the complete analysis for XTER:HPHA
WACC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
XTER:HPHA has been successfully added to your 
