CVM WACC - Weighted Average Cost of Capital
The WACC of CEL-SCI Corp (CVM) is 8.5%.
| Range | Selected | |
| Cost of equity | 9.3% - 12.4% | 10.85% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.5% - 9.6% | 8.5% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 1.18 | 1.35 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.3% | 12.4% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 0.48 | 0.48 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.5% | 9.6% |
| Selected WACC | 8.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CVM | CEL-SCI Corp | 0.48 | 1.38 | 1.02 |
| ADAG | Adagene Inc | 0.24 | 0.45 | 0.38 |
| AQB | AquaBounty Technologies Inc | 1.28 | 0.41 | 0.21 |
| FLXN | Flexion Therapeutics Inc | 0.5 | 1.56 | 1.14 |
| IMAB | I-Mab | 0.06 | 1.42 | 1.36 |
| KDMN | Kadmon Holdings Inc | 0 | 1.12 | 1.12 |
| MGTX | MeiraGTx Holdings PLC | 0.17 | 1.48 | 1.32 |
| RCEL | AVITA Medical Inc | 0.23 | 1.82 | 1.56 |
| TH.TO | Theratechnologies Inc | 0.38 | 1.03 | 0.8 |
| TNXP | Tonix Pharmaceuticals Holding Corp | 0.05 | 0.5 | 0.49 |
| Low | High | |
| Unlevered beta | 0.94 | 1.13 |
| Relevered beta | 1.27 | 1.52 |
| Adjusted relevered beta | 1.18 | 1.35 |
CVM'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 CVM:
cost_of_equity (10.85%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.18) + 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.