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Recursion Pharmaceuticals, Inc. Class A Common Stock (RXRX) — WACC Analysis

WACC Breakdown

Recursion Pharmaceuticals, Inc. Class A Common Stock (RXRX) has a weighted average cost of capital (WACC) of 12.7%. The cost of equity is 12.7%, derived from a beta of 2.32 and a risk-free rate of 4.7%. The after-tax cost of debt is 31.2%. The capital structure is 99.7% equity and 0.3% debt.

Interpretation

A WACC of 12.7% indicates that the market perceives Recursion Pharmaceuticals, Inc. Class A Common Stock as higher-risk, requiring a greater return to compensate investors.

Investors can compare RXRX's WACC of 12.7% against industry peers to gauge its relative financing costs. A beta of 2.32 reflects the stock's volatility relative to the broader market.

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VALUATION

RXRX WACC: 12.73% for Recursion Pharmaceuticals, Inc. Class A Common Stock

Current inputs imply a 12.68% cost of equity and a 31.16% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Recursion Pharmaceuticals, Inc. Class A Common Stock Common Stock (RXRX) WACC Results
Weighted Average Cost of Capital
12.73%
Cost of Equity
12.68%
Risk-Free Rate4.73%
Beta2.32
Market Risk Premium4.23%
Cost of Debt
31.16%
Pre-Tax Cost of Debt31.16%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 99.74%($1791.15M)
Debt: 0.26%($4.75M)
Equity Component
12.65%
99.74% × 12.68%
Debt Component
0.08%
0.26% × 31.16%

Recursion Pharmaceuticals, Inc. Class A Common Stock (RXRX) WACC in context

Recursion Pharmaceuticals, Inc. Class A Common Stock (RXRX) currently screens with an estimated WACC of 12.73%. That blends a 12.68% cost of equity, a 31.16% pre-tax cost of debt, and a 99.74% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

What RXRX WACC implies

A 12.73% discount rate screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

How this page calculates RXRX

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 2.32 and equity accounts for 99.74% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.