BLPH
Bellerophon Therapeutics Inc
Price:  
0.10 
USD
Volume:  
14,948,914.00
United States | Health Care Equipment & Supplies
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BLPH WACC - Weighted Average Cost of Capital

The WACC of Bellerophon Therapeutics Inc (BLPH) is 7.0%.

The Cost of Equity of Bellerophon Therapeutics Inc (BLPH) is 9.55%.
The Cost of Debt of Bellerophon Therapeutics Inc (BLPH) is 5.00%.

Range Selected
Cost of equity 6.40% - 12.70% 9.55%
Tax rate 10.20% - 11.30% 10.75%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.4% - 8.5% 7.0%
WACC

BLPH WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.54 1.39
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.40% 12.70%
Tax rate 10.20% 11.30%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 5.4% 8.5%
Selected WACC 7.0%

BLPH'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 BLPH:

cost_of_equity (9.55%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.54) + 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.