CDAK
Codiak BioSciences, Inc.
Price:  
0.06 
USD
Volume:  
13,642,300.00
United States | Biotechnology
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CDAK WACC - Weighted Average Cost of Capital

The WACC of Codiak BioSciences, Inc. (CDAK) is 8.2%.

The Cost of Equity of Codiak BioSciences, Inc. (CDAK) is 15.15%.
The Cost of Debt of Codiak BioSciences, Inc. (CDAK) is 9.40%.

Range Selected
Cost of equity 12.60% - 17.70% 15.15%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 7.00% - 11.80% 9.40%
WACC 6.3% - 10.1% 8.2%
WACC

CDAK WACC calculation

Category Low High
Long-term bond rate 4.2% 4.7%
Equity market risk premium 5.0% 6.0%
Adjusted beta 1.68 2.1
Additional risk adjustments 0.0% 0.5%
Cost of equity 12.60% 17.70%
Tax rate 26.20% 27.00%
Debt/Equity ratio 5.33 5.33
Cost of debt 7.00% 11.80%
After-tax WACC 6.3% 10.1%
Selected WACC 8.2%

CDAK'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 CDAK:

cost_of_equity (15.15%) = risk_free_rate (4.45%) + equity_risk_premium (5.50%) * adjusted_beta (1.68) + 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.