Bionano WACC - Weighted Average Cost of Capital
The WACC of Bionano Genomics Inc (BNGO) is 16.9%.
| Range | Selected | |
| Cost of equity | 6.9% - 9.3% | 8.1% |
| Tax rate | 0.1% - 0.6% | 0.35% |
| Cost of debt | 7.0% - 84.5% | 45.75% |
| WACC | 6.9% - 26.9% | 16.9% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.65 | 0.79 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.9% | 9.3% |
| Tax rate | 0.1% | 0.6% |
| Debt/Equity ratio | 0.31 | 0.31 |
| Cost of debt | 7.0% | 84.5% |
| After-tax WACC | 6.9% | 26.9% |
| Selected WACC | 16.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BNGO | Bionano Genomics Inc | 0.31 | 1.66 | 1.27 |
| ARYC | Arrayit Corp | 1428.99 | -1 | 0 |
| FLDM | Fluidigm Corp | 0.25 | 1.16 | 0.93 |
| HBIO | Harvard Bioscience Inc | 2.49 | 1.94 | 0.56 |
| INIS | International Isotopes Inc | 0.23 | 0.48 | 0.39 |
| IPA.V | Immunoprecise Antibodies Ltd | 0.02 | -0.15 | -0.15 |
| LMNX | Luminex Corp | 0.12 | 0.57 | 0.51 |
| PACB | Pacific Biosciences of California Inc | 2.24 | 0.3 | 0.09 |
| SONA.CN | Sona Nanotech Inc | 0.01 | 1.34 | 1.33 |
| CHEMM.CO | Chemometec A/S | 0 | 0.34 | 0.34 |
| Low | High | |
| Unlevered beta | 0.37 | 0.53 |
| Relevered beta | 0.48 | 0.69 |
| Adjusted relevered beta | 0.65 | 0.79 |
Bionano'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 Bionano:
cost_of_equity (8.10%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.65) + 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.