GMAB.CO WACC - Weighted Average Cost of Capital

The WACC of Genmab A/S (GMAB.CO) is 7.8%.

The Cost of Equity of Genmab A/S (GMAB.CO) is 9.20%.

The Cost of Debt of Genmab A/S (GMAB.CO) is 4.40%.

	Range	Selected
Cost of equity	7.50% - 10.90%	9.20%
Tax rate	20.90% - 22.00%	21.45%
Cost of debt	4.00% - 4.80%	4.40%
WACC	6.5% - 9.2%	7.8%

WACC

GMAB.CO WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.93	1.18

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.50%	10.90%

Tax rate	20.90%	22.00%
Debt/Equity ratio	0.31	0.31
Cost of debt	4.00%	4.80%

After-tax WACC	6.5%	9.2%


Selected WACC	7.8%

GMAB.CO'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 GMAB.CO:

cost_of_equity (9.20%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.93) + 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.