EVLO
Evelo Biosciences Inc
Price:  
0.32 
USD
Volume:  
712,643.00
United States | Biotechnology
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EVLO WACC - Weighted Average Cost of Capital

The WACC of Evelo Biosciences Inc (EVLO) is 8.7%.

The Cost of Equity of Evelo Biosciences Inc (EVLO) is 28,272.65%.
The Cost of Debt of Evelo Biosciences Inc (EVLO) is 5.00%.

Range Selected
Cost of equity 18,610.50% - 37,934.80% 28,272.65%
Tax rate 0.30% - 0.40% 0.35%
Cost of debt 5.00% - 5.00% 5.00%
WACC 7.4% - 9.9% 8.7%
WACC

EVLO WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 4044.92 6773.2
Additional risk adjustments 0.0% 0.5%
Cost of equity 18,610.50% 37,934.80%
Tax rate 0.30% 0.40%
Debt/Equity ratio 7656.05 7656.05
Cost of debt 5.00% 5.00%
After-tax WACC 7.4% 9.9%
Selected WACC 8.7%

EVLO'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 EVLO:

cost_of_equity (28,272.65%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (4044.92) + 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.