DVAX
Dynavax Technologies Corp
Price:  
9.82 
USD
Volume:  
1,431,388.00
United States | Biotechnology
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DVAX WACC - Weighted Average Cost of Capital

The WACC of Dynavax Technologies Corp (DVAX) is 7.6%.

The Cost of Equity of Dynavax Technologies Corp (DVAX) is 8.00%.
The Cost of Debt of Dynavax Technologies Corp (DVAX) is 5.50%.

Range Selected
Cost of equity 6.50% - 9.50% 8.00%
Tax rate 0.80% - 5.20% 3.00%
Cost of debt 4.00% - 7.00% 5.50%
WACC 6.1% - 9.0% 7.6%
WACC

DVAX WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.57 0.83
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.50% 9.50%
Tax rate 0.80% 5.20%
Debt/Equity ratio 0.19 0.19
Cost of debt 4.00% 7.00%
After-tax WACC 6.1% 9.0%
Selected WACC 7.6%

DVAX'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 DVAX:

cost_of_equity (8.00%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.57) + 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.