BNTC WACC - Weighted Average Cost of Capital
The WACC of Benitec Biopharma Inc (BNTC) is 6.5%.
| Range | Selected | |
| Cost of equity | 7.7% - 11.1% | 9.4% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.7% - 7.4% | 6.5% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.84 | 1.11 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.7% | 11.1% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.7% | 7.4% |
| Selected WACC | 6.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BNTC | Benitec Biopharma Inc | 1.19 | 0.63 | 0.34 |
| ADTX | ADiTx Therapeutics Inc | 0.03 | 0.56 | 0.55 |
| BTI.V | biOasis Technologies Inc | 4.79 | 0 | 0 |
| GNBT | Generex Biotechnology Corp | 152.88 | -0.08 | 0 |
| LIFE | aTyr Pharma Inc | 0.01 | 1.48 | 1.47 |
| MLND | Millendo Therapeutics Inc | 0.01 | 0.45 | 0.44 |
| PSTV | Plus Therapeutics Inc | 0.29 | 1.05 | 0.87 |
| TELO.V | Telo Genomics Corp | 0 | 0.29 | 0.29 |
| CSL.AX | CSL Ltd | 0.16 | 0.49 | 0.44 |
| IMM.AX | Immutep Ltd | 0 | 1.98 | 1.97 |
| PYC.AX | PYC Therapeutics Ltd | 0 | 1.97 | 1.97 |
| Low | High | |
| Unlevered beta | 0.44 | 0.55 |
| Relevered beta | 0.76 | 1.16 |
| Adjusted relevered beta | 0.84 | 1.11 |
BNTC'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 BNTC:
cost_of_equity (9.40%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.84) + 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.