ADTX
ADiTx Therapeutics Inc
Price:  
2.20 
USD
Volume:  
1,177,842.00
United States | Biotechnology
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ADTX WACC - Weighted Average Cost of Capital

The WACC of ADiTx Therapeutics Inc (ADTX) is 9.1%.

The Cost of Equity of ADiTx Therapeutics Inc (ADTX) is 7.50%.
The Cost of Debt of ADiTx Therapeutics Inc (ADTX) is 110.05%.

Range Selected
Cost of equity 6.50% - 8.50% 7.50%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 7.00% - 213.10% 110.05%
WACC 6.5% - 11.8% 9.1%
WACC

ADTX WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.58 0.64
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.50% 8.50%
Tax rate 26.20% 27.00%
Debt/Equity ratio 0.02 0.02
Cost of debt 7.00% 213.10%
After-tax WACC 6.5% 11.8%
Selected WACC 9.1%

ADTX'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 ADTX:

cost_of_equity (7.50%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.58) + 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.