AYLA
Ayala Pharmaceuticals Inc
Price:  
0.50 
USD
Volume:  
93,049.00
United States | Biotechnology
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AYLA WACC - Weighted Average Cost of Capital

The WACC of Ayala Pharmaceuticals Inc (AYLA) is 7.2%.

The Cost of Equity of Ayala Pharmaceuticals Inc (AYLA) is 9.45%.
The Cost of Debt of Ayala Pharmaceuticals Inc (AYLA) is 5.00%.

Range Selected
Cost of equity 5.90% - 13.00% 9.45%
Tax rate 1.80% - 1.90% 1.85%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.4% - 8.9% 7.2%
WACC

AYLA WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.45 1.45
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.90% 13.00%
Tax rate 1.80% 1.90%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 5.4% 8.9%
Selected WACC 7.2%

AYLA'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 AYLA:

cost_of_equity (9.45%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.45) + 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.