Biodesix, WACC - Weighted Average Cost of Capital
The WACC of Biodesix, Inc. (BDSX) is 7.7%.
| Range | Selected | |
| Cost of equity | 6.0% - 10.1% | 8.05% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 7.0% - 13.0% | 10% |
| WACC | 5.6% - 9.8% | 7.7% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.46 | 0.93 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.0% | 10.1% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 0.99 | 0.99 |
| Cost of debt | 7.0% | 13.0% |
| After-tax WACC | 5.6% | 9.8% |
| Selected WACC | 7.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BDSX | Biodesix, Inc. | 0.99 | 0.3 | 0.17 |
| CCEL | Cryo-Cell International Inc | 0.2 | -0.13 | -0.12 |
| ENZ | Enzo Biochem Inc | 0.01 | 1.9 | 1.88 |
| FCHS | First Choice Healthcare Solutions Inc | 87.3 | 1.24 | 0.02 |
| GTMS.TO | Greenbrook TMS Inc | 5.15 | 1.71 | 0.36 |
| MBCN.TO | MindBeacon Holdings Inc | 0.02 | 0.91 | 0.9 |
| NLH.V | Nova Leap Health Corp | 0.15 | -0.01 | -0.01 |
| PTQ.V | Protech Home Medical Corp | 0.15 | 1.94 | 1.75 |
| XGN | Exagen Inc | 0.14 | 0.83 | 0.76 |
| Low | High | |
| Unlevered beta | 0.21 | 0.68 |
| Relevered beta | 0.19 | 0.9 |
| Adjusted relevered beta | 0.46 | 0.93 |
Biodesix,'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 Biodesix,:
cost_of_equity (8.05%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.46) + 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.