CLSN WACC - Weighted Average Cost of Capital
The WACC of Celsion Corp (CLSN) is 12.5%.
| Range | Selected | |
| Cost of equity | 6.2% - 8.7% | 7.45% |
| Tax rate | 5.8% - 6.6% | 6.2% |
| Cost of debt | 7.0% - 44.9% | 25.95% |
| WACC | 6.3% - 18.8% | 12.5% |
| Category | Low | High |
| Long-term bond rate | 4.2% | 4.7% |
| Equity market risk premium | 5.0% | 6.0% |
| Adjusted beta | 0.4 | 0.58 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.2% | 8.7% |
| Tax rate | 5.8% | 6.6% |
| Debt/Equity ratio | 0.43 | 0.43 |
| Cost of debt | 7.0% | 44.9% |
| After-tax WACC | 6.3% | 18.8% |
| Selected WACC | 12.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CLSN | Celsion Corp | 0.43 | 2.25 | 1.6 |
| APM | Aptorum Group Ltd | 0.51 | 1.34 | 0.9 |
| CAPR | Capricor Therapeutics Inc | 0.01 | 1.89 | 1.87 |
| EDT.TO | Spectral Medical Inc | 0.06 | 0.78 | 0.74 |
| GALT | Galectin Therapeutics Inc | 1.22 | 1.63 | 0.76 |
| GNCA | Genocea Biosciences Inc | 74.74 | 1.36 | 0.02 |
| HTBX | Heat Biologics Inc | 0.01 | 0.32 | 0.32 |
| IPIX | Innovation Pharmaceuticals Inc | 1.44 | -2.68 | -1.14 |
| LMNL | Liminal BioSciences Inc | 0.04 | 0.66 | 0.63 |
| SBM.V | Sirona Biochem Corp | 0.14 | 1.61 | 1.42 |
| SVRA | Savara Inc | 0.05 | 1 | 0.95 |
| Low | High | |
| Unlevered beta | 0.74 | 0.9 |
| Relevered beta | 0.1 | 0.37 |
| Adjusted relevered beta | 0.4 | 0.58 |
CLSN'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 CLSN:
cost_of_equity (7.45%) = risk_free_rate (4.45%) + equity_risk_premium (5.50%) * adjusted_beta (0.4) + 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.