ARYC WACC - Weighted Average Cost of Capital
The WACC of Arrayit Corp (ARYC) is 6.2%.
| Range | Selected | |
| Cost of equity | 1336.7% - 1848.7% | 1592.7% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 7.0% - 7.0% | 7% |
| WACC | 6.1% - 6.4% | 6.2% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 289.75 | 329.26 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 1336.7% | 1848.7% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1428.99 | 1428.99 |
| Cost of debt | 7.0% | 7.0% |
| After-tax WACC | 6.1% | 6.4% |
| Selected WACC | 6.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ARYC | Arrayit Corp | 1428.99 | -1 | 0 |
| BIO | Bio Rad Laboratories Inc | 0.19 | 0.52 | 0.45 |
| FLDM | Fluidigm Corp | 0.25 | 1.16 | 0.99 |
| HBIO | Harvard Bioscience Inc | 2.49 | 2.01 | 0.72 |
| INIS | International Isotopes Inc | 0.24 | 0.47 | 0.4 |
| IPA.V | Immunoprecise Antibodies Ltd | 0.02 | -0.15 | -0.15 |
| PACB | Pacific Biosciences of California Inc | 2.34 | 0.22 | 0.08 |
| SONA.CN | Sona Nanotech Inc | 0.01 | 1.38 | 1.37 |
| TMO | Thermo Fisher Scientific Inc | 0.21 | 0.49 | 0.42 |
| WAT | Waters Corp | 0.08 | 0.52 | 0.49 |
| Low | High | |
| Unlevered beta | 0.41 | 0.47 |
| Relevered beta | 431.97 | 490.94 |
| Adjusted relevered beta | 289.75 | 329.26 |
ARYC'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 ARYC:
cost_of_equity (1,592.70%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (289.75) + 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.