The WACC of Transgene Biotek Ltd (526139.BO) is 8.9%.
Range | Selected | |
Cost of equity | 8.4% - 13.5% | 10.95% |
Tax rate | 30.0% - 30.0% | 30% |
Cost of debt | 4.0% - 7.0% | 5.5% |
WACC | 6.8% - 11.1% | 8.9% |
Category | Low | High |
Long-term bond rate | 6.9% | 7.4% |
Equity market risk premium | 8.3% | 9.3% |
Adjusted beta | 0.18 | 0.61 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 8.4% | 13.5% |
Tax rate | 30.0% | 30.0% |
Debt/Equity ratio | 0.4 | 0.4 |
Cost of debt | 4.0% | 7.0% |
After-tax WACC | 6.8% | 11.1% |
Selected WACC | 8.9% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
526139.BO | Transgene Biotek Ltd | 0.4 | 0.92 | 0.72 |
215600.KQ | SillaJen Inc | 0.02 | 0.81 | 0.8 |
235980.KQ | MedPacto Inc | 0 | 1.15 | 1.15 |
284620.KQ | Kainos Medicine Inc | 0.07 | 0.42 | 0.4 |
299660.KQ | Cellid Co Ltd | 0.09 | -1.11 | -1.04 |
ACW.AX | Actinogen Medical Ltd | 0.01 | -0.4 | -0.4 |
ATX.AX | Amplia Therapeutics Ltd | 0 | -0.23 | -0.23 |
SCU.AX | Stemcell United Ltd | 0.19 | -0.63 | -0.55 |
VBS.AX | Vectus Biosystems Ltd | 0.01 | 0.05 | 0.05 |
Low | High | |
Unlevered beta | -0.17 | 0.33 |
Relevered beta | -0.22 | 0.42 |
Adjusted relevered beta | 0.18 | 0.61 |
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 526139.BO:
cost_of_equity (10.95%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.18) + 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.