Bioatla WACC - Weighted Average Cost of Capital
The WACC of Bioatla Inc (BCAB) is 6.2%.
| Range | Selected | |
| Cost of equity | 7.1% - 10.3% | 8.7% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.4% - 7.0% | 6.2% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.7 | 0.96 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.1% | 10.3% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.4% | 7.0% |
| Selected WACC | 6.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BCAB | Bioatla Inc | 0.97 | 3.07 | 1.8 |
| ABBV | Abbvie Inc | 0.21 | 0.39 | 0.34 |
| ADCT | ADC Therapeutics SA | 2.31 | 1.85 | 0.69 |
| ALEC | Alector Inc | 0.08 | 2.1 | 1.99 |
| AMGN | Amgen Inc | 0.41 | 0.36 | 0.28 |
| AMTI | Applied Molecular Transport Inc. | 0.05 | 0.47 | 0.45 |
| DMTK | DermTech Inc | 0.03 | 2.09 | 2.05 |
| GILD | Gilead Sciences Inc | 0.21 | 0.33 | 0.29 |
| KURA | Kura Oncology Inc | 0.02 | 1.41 | 1.39 |
| PRLD | Prelude Therapeutics Inc | 0 | 0.23 | 0.23 |
| VBIV | VBI Vaccines Inc | 13.32 | 1.21 | 0.11 |
| Low | High | |
| Unlevered beta | 0.34 | 0.69 |
| Relevered beta | 0.55 | 0.94 |
| Adjusted relevered beta | 0.7 | 0.96 |
Bioatla'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 Bioatla:
cost_of_equity (8.70%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.7) + 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.