CLGN WACC - Weighted Average Cost of Capital
The WACC of Collplant Biotechnologies Ltd (CLGN) is 7.2%.
| Range | Selected | |
| Cost of equity | 8.8% - 12.8% | 10.8% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.2% - 8.2% | 7.2% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 1.07 | 1.41 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.8% | 12.8% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.2% | 8.2% |
| Selected WACC | 7.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CLGN | Collplant Biotechnologies Ltd | 0.93 | 0.19 | 0.11 |
| ALNA | Allena Pharmaceuticals Inc | 0.77 | 1.14 | 0.73 |
| ATNM | Actinium Pharmaceuticals Inc | 0 | 1.94 | 1.94 |
| EVAX | Evaxion Biotech A/S | 4.16 | 2.02 | 0.5 |
| FSTX | F-Star Therapeutics Inc | 0.06 | 1.01 | 0.97 |
| GMDA | Gamida Cell Ltd | 17.12 | 0.77 | 0.06 |
| KMDA | Kamada Ltd | 0.03 | 0.93 | 0.91 |
| SLNO | Soleno Therapeutics Inc | 0.01 | 0.39 | 0.38 |
| SYN | Synthetic Biologics Inc | 0.02 | 1.38 | 1.36 |
| URGN | Urogen Pharma Ltd | 0.64 | 0.42 | 0.28 |
| WLLW.TO | Willow Biosciences Inc | 0.39 | 1.53 | 1.19 |
| Low | High | |
| Unlevered beta | 0.5 | 0.91 |
| Relevered beta | 1.1 | 1.61 |
| Adjusted relevered beta | 1.07 | 1.41 |
CLGN'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 CLGN:
cost_of_equity (10.80%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.07) + 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.