NVTA
Invitae Corp
Price:  
0.09 
USD
Volume:  
94,199,600.00
United States | Biotechnology
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NVTA WACC - Weighted Average Cost of Capital

The WACC of Invitae Corp (NVTA) is 7.9%.

The Cost of Equity of Invitae Corp (NVTA) is 655.60%.
The Cost of Debt of Invitae Corp (NVTA) is 6.15%.

Range Selected
Cost of equity 444.70% - 866.50% 655.60%
Tax rate 5.10% - 7.80% 6.45%
Cost of debt 5.30% - 7.00% 6.15%
WACC 6.5% - 9.4% 7.9%
WACC

NVTA WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 95.82 153.86
Additional risk adjustments 0.0% 0.5%
Cost of equity 444.70% 866.50%
Tax rate 5.10% 7.80%
Debt/Equity ratio 294.3 294.3
Cost of debt 5.30% 7.00%
After-tax WACC 6.5% 9.4%
Selected WACC 7.9%

NVTA'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 NVTA:

cost_of_equity (655.60%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (95.82) + 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.