BNTX
BioNTech SE
Price:  
92.77 
USD
Volume:  
607,232.00
Germany | Biotechnology
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BNTX WACC - Weighted Average Cost of Capital

The WACC of BioNTech SE (BNTX) is 8.4%.

The Cost of Equity of BioNTech SE (BNTX) is 8.40%.
The Cost of Debt of BioNTech SE (BNTX) is 6.15%.

Range Selected
Cost of equity 7.40% - 9.40% 8.40%
Tax rate 24.90% - 28.90% 26.90%
Cost of debt 5.30% - 7.00% 6.15%
WACC 7.4% - 9.4% 8.4%
WACC

BNTX WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.77 0.81
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.40% 9.40%
Tax rate 24.90% 28.90%
Debt/Equity ratio 0.01 0.01
Cost of debt 5.30% 7.00%
After-tax WACC 7.4% 9.4%
Selected WACC 8.4%

BNTX'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 BNTX:

cost_of_equity (8.40%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.77) + 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.