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    • FWP
    Forward Pharma A/S
    Price:  
    1.95 
    USD
    Volume:  
    43,354
    Denmark | Biotechnology
    ValuationOverviewFinancialsForecastCompareHistorical PriceDividendsTransactionsPeople
    Valuation Summary
    Trading Multiples
    Peter Lynch Fair Value
    WACC
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    FWP WACC - Weighted Average Cost of Capital

    The WACC of Forward Pharma A/S (FWP) is 7.8%.

    The Cost of Equity of Forward Pharma A/S (FWP) is 10.7%.
    The Cost of Debt of Forward Pharma A/S (FWP) is 5%.

    RangeSelected
    Cost of equity9.1% - 12.3%10.7%
    Tax rate1.8% - 6.3%4.05%
    Cost of debt5.0% - 5.0%5%
    WACC7.0% - 8.5%7.8%
    WACC

    FWP WACC calculation

    CategoryLowHigh
    Long-term bond rate4.2%4.7%
    Equity market risk premium5.0%6.0%
    Adjusted beta0.991.19
    Additional risk adjustments0.0%0.5%
    Cost of equity9.1%12.3%
    Tax rate1.8%6.3%
    Debt/Equity ratio
    		11
    Cost of debt5.0%5.0%
    After-tax WACC7.0%8.5%
    Selected WACC7.8%

    FWP'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 FWP:

    cost_of_equity (10.70%) = risk_free_rate (4.45%) + equity_risk_premium (5.50%) * adjusted_beta (0.99) + 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.