BDSX
Biodesix, Inc.
Price:  
0.35 
USD
Volume:  
2,894,317.00
United States | Health Care Providers & Services
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Biodesix, WACC - Weighted Average Cost of Capital

The WACC of Biodesix, Inc. (BDSX) is 8.1%.

The Cost of Equity of Biodesix, Inc. (BDSX) is 8.50%.
The Cost of Debt of Biodesix, Inc. (BDSX) is 10.00%.

Range Selected
Cost of equity 6.30% - 10.70% 8.50%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 7.00% - 13.00% 10.00%
WACC 5.9% - 10.3% 8.1%
WACC

Biodesix, WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.53 1.05
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.30% 10.70%
Tax rate 26.20% 27.00%
Debt/Equity ratio 0.48 0.48
Cost of debt 7.00% 13.00%
After-tax WACC 5.9% 10.3%
Selected WACC 8.1%

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 (8.50%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.53) + 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.