CERS
Cerus Corp
Price:  
1.23 
USD
Volume:  
685,808.00
United States | Health Care Equipment & Supplies
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Cerus WACC - Weighted Average Cost of Capital

The WACC of Cerus Corp (CERS) is 8.7%.

The Cost of Equity of Cerus Corp (CERS) is 8.75%.
The Cost of Debt of Cerus Corp (CERS) is 8.60%.

Range Selected
Cost of equity 7.00% - 10.50% 8.75%
Tax rate 0.70% - 0.90% 0.80%
Cost of debt 7.00% - 10.20% 8.60%
WACC 7.0% - 10.4% 8.7%
WACC

Cerus WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.68 1
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.00% 10.50%
Tax rate 0.70% 0.90%
Debt/Equity ratio 0.36 0.36
Cost of debt 7.00% 10.20%
After-tax WACC 7.0% 10.4%
Selected WACC 8.7%

Cerus'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 Cerus:

cost_of_equity (8.75%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.68) + 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.