BFLY
Butterfly Network Inc
Price:  
2.27 
USD
Volume:  
2,828,171.00
United States | Health Care Equipment & Supplies
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BFLY WACC - Weighted Average Cost of Capital

The WACC of Butterfly Network Inc (BFLY) is 7.5%.

The Cost of Equity of Butterfly Network Inc (BFLY) is 9.90%.
The Cost of Debt of Butterfly Network Inc (BFLY) is 5.00%.

Range Selected
Cost of equity 8.40% - 11.40% 9.90%
Tax rate -% - 0.10% 0.05%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.7% - 8.2% 7.5%
WACC

BFLY WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.98 1.17
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.40% 11.40%
Tax rate -% 0.10%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 6.7% 8.2%
Selected WACC 7.5%

BFLY'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 BFLY:

cost_of_equity (9.90%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.98) + 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.