BCAX
Bicara Therapeutics Inc
Price:  
9.92 
USD
Volume:  
290,514
United States | Professional, Scientific, and Technical Services

BCAX WACC - Weighted Average Cost of Capital

The WACC of Bicara Therapeutics Inc (BCAX) is 11.2%.

The Cost of Equity of Bicara Therapeutics Inc (BCAX) is 17.3%.
The Cost of Debt of Bicara Therapeutics Inc (BCAX) is 5%.

RangeSelected
Cost of equity15.5% - 19.1%17.3%
Tax rate0.0% - 0.1%0.05%
Cost of debt5.0% - 5.0%5%
WACC10.3% - 12.0%11.2%
WACC

BCAX WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium4.6%5.6%
Adjusted beta2.542.54
Additional risk adjustments0.0%0.5%
Cost of equity15.5%19.1%
Tax rate0.0%0.1%
Debt/Equity ratio
11
Cost of debt5.0%5.0%
After-tax WACC10.3%12.0%
Selected WACC11.2%

BCAX WACC - Detailed calculations of Beta

Debt/EquityUnlevered
PeersCompany NameratioBetabeta
BCAXBicara Therapeutics Inc1.071.670.81
LowHigh
Unlevered beta0.810.81
Relevered beta3.33.3
Adjusted relevered beta2.542.54

BCAX'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 BCAX:

cost_of_equity (17.30%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (2.54) + 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.