CCCC
C4 Therapeutics Inc
Price:  
1.43 
USD
Volume:  
677,845.00
United States | Biotechnology
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CCCC WACC - Weighted Average Cost of Capital

The WACC of C4 Therapeutics Inc (CCCC) is 7.7%.

The Cost of Equity of C4 Therapeutics Inc (CCCC) is 10.40%.
The Cost of Debt of C4 Therapeutics Inc (CCCC) is 5.00%.

Range Selected
Cost of equity 7.10% - 13.70% 10.40%
Tax rate 0.10% - 0.50% 0.30%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.1% - 9.3% 7.7%
WACC

CCCC WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.71 1.58
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.10% 13.70%
Tax rate 0.10% 0.50%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 6.1% 9.3%
Selected WACC 7.7%

CCCC'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 CCCC:

cost_of_equity (10.40%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.71) + 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.