APM WACC - Weighted Average Cost of Capital
The WACC of Aptorum Group Ltd (APM) is 13.1%.
| Range | Selected | |
| Cost of equity | 7.2% - 10.8% | 9% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 28.9% - 28.9% | 28.9% |
| WACC | 12.0% - 14.3% | 13.1% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.73 | 1.06 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.2% | 10.8% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 0.51 | 0.51 |
| Cost of debt | 28.9% | 28.9% |
| After-tax WACC | 12.0% | 14.3% |
| Selected WACC | 13.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| APM | Aptorum Group Ltd | 0.51 | 1.34 | 0.97 |
| ADAP | Adaptimmune Therapeutics PLC | 0.65 | 0.19 | 0.13 |
| ARMP | Armata Pharmaceuticals Inc | 2.02 | 0.37 | 0.15 |
| AZRX | AzurRx BioPharma Inc | 0.02 | 1.58 | 1.56 |
| CAPR | Capricor Therapeutics Inc | 0.01 | 1.89 | 1.87 |
| EDT.TO | Spectral Medical Inc | 0.06 | 0.78 | 0.75 |
| GALT | Galectin Therapeutics Inc | 1.22 | 1.63 | 0.86 |
| GNCA | Genocea Biosciences Inc | 74.74 | 1.36 | 0.02 |
| IMCR | Immunocore Holdings PLC | 0.37 | 0.6 | 0.48 |
| ABC.L | Abcam PLC | 0.08 | 0.39 | 0.37 |
| Low | High | |
| Unlevered beta | 0.43 | 0.79 |
| Relevered beta | 0.6 | 1.09 |
| Adjusted relevered beta | 0.73 | 1.06 |
APM'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 APM:
cost_of_equity (9.00%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.73) + 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.