EVAX WACC - Weighted Average Cost of Capital

The WACC of Evaxion Biotech A/S (EVAX) is 18.1%.

The Cost of Equity of Evaxion Biotech A/S (EVAX) is 14.40%.

The Cost of Debt of Evaxion Biotech A/S (EVAX) is 19.85%.

	Range	Selected
Cost of equity	11.50% - 17.30%	14.40%
Tax rate	3.40% - 4.80%	4.10%
Cost of debt	7.00% - 32.70%	19.85%
WACC	7.7% - 28.4%	18.1%

WACC

EVAX WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	4.6%	5.6%
Adjusted beta	1.65	2.22

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.50%	17.30%

Tax rate	3.40%	4.80%
Debt/Equity ratio	4.16	4.16
Cost of debt	7.00%	32.70%

After-tax WACC	7.7%	28.4%


Selected WACC	18.1%

EVAX'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 EVAX:

cost_of_equity (14.40%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.65) + 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.