BAVA.CO WACC - Weighted Average Cost of Capital

The WACC of Bavarian Nordic A/S (BAVA.CO) is 6.5%.

The Cost of Equity of Bavarian Nordic A/S (BAVA.CO) is 6.55%.

The Cost of Debt of Bavarian Nordic A/S (BAVA.CO) is 5.50%.

	Range	Selected
Cost of equity	5.60% - 7.50%	6.55%
Tax rate	1.70% - 1.90%	1.80%
Cost of debt	4.00% - 7.00%	5.50%
WACC	5.5% - 7.5%	6.5%

WACC

BAVA.CO WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.55	0.61

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.60%	7.50%

Tax rate	1.70%	1.90%
Debt/Equity ratio	0.01	0.01
Cost of debt	4.00%	7.00%

After-tax WACC	5.5%	7.5%


Selected WACC	6.5%

BAVA.CO'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 BAVA.CO:

cost_of_equity (6.55%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.55) + 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.