AFMD
Affimed NV
Price:  
0.18 
USD
Volume:  
23,468,080.00
Germany | Biotechnology
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AFMD WACC - Weighted Average Cost of Capital

The WACC of Affimed NV (AFMD) is 14.6%.

The Cost of Equity of Affimed NV (AFMD) is 23.40%.
The Cost of Debt of Affimed NV (AFMD) is 14.35%.

Range Selected
Cost of equity 13.50% - 33.30% 23.40%
Tax rate -% - -% -%
Cost of debt 7.00% - 21.70% 14.35%
WACC 7.2% - 22.1% 14.6%
WACC

AFMD WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 2.1 5.08
Additional risk adjustments 0.0% 0.5%
Cost of equity 13.50% 33.30%
Tax rate -% -%
Debt/Equity ratio 29.73 29.73
Cost of debt 7.00% 21.70%
After-tax WACC 7.2% 22.1%
Selected WACC 14.6%

AFMD'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 AFMD:

cost_of_equity (23.40%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (2.1) + 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.