CDXS
Codexis Inc
Price:  
2.46 
USD
Volume:  
490,047.00
United States | Life Sciences Tools & Services
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CDXS WACC - Weighted Average Cost of Capital

The WACC of Codexis Inc (CDXS) is 8.1%.

The Cost of Equity of Codexis Inc (CDXS) is 8.30%.
The Cost of Debt of Codexis Inc (CDXS) is 7.00%.

Range Selected
Cost of equity 7.20% - 9.40% 8.30%
Tax rate 0.60% - 0.90% 0.75%
Cost of debt 7.00% - 7.00% 7.00%
WACC 7.2% - 9.1% 8.1%
WACC

CDXS WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.73 0.8
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.20% 9.40%
Tax rate 0.60% 0.90%
Debt/Equity ratio 0.14 0.14
Cost of debt 7.00% 7.00%
After-tax WACC 7.2% 9.1%
Selected WACC 8.1%

CDXS'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 CDXS:

cost_of_equity (8.30%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.73) + 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.