CSBR WACC - Weighted Average Cost of Capital
The WACC of Champions Oncology Inc (CSBR) is 5.6%.
| Range | Selected | |
| Cost of equity | 5.4% - 7.6% | 6.5% |
| Tax rate | 4.7% - 6.9% | 5.8% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.1% - 6.1% | 5.6% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.33 | 0.48 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 7.6% |
| Tax rate | 4.7% | 6.9% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.1% | 6.1% |
| Selected WACC | 5.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CSBR | Champions Oncology Inc | 0 | 0.69 | 0.68 |
| ARCH.V | Arch Biopartners Inc | 0.02 | 0.67 | 0.66 |
| CDXC | Chromadex Corp | 0 | 0.57 | 0.57 |
| CRL | Charles River Laboratories International Inc | 0.33 | 0.39 | 0.3 |
| EVIO | EVIO Inc | 595.18 | 0 | 0 |
| IQV | IQVIA Holdings Inc | 0.54 | 0.68 | 0.45 |
| PBIO | Pressure Biosciences Inc | 106.82 | -1.87 | -0.02 |
| C4XD.L | C4X Discovery Holdings PLC | 0.02 | -0.29 | -0.29 |
| OBD.L | Oxford Biodynamics PLC | 0.75 | -1.23 | -0.72 |
| Low | High | |
| Unlevered beta | 0.06 | 0.42 |
| Relevered beta | 0 | 0.22 |
| Adjusted relevered beta | 0.33 | 0.48 |
CSBR'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 CSBR:
cost_of_equity (6.50%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.33) + 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.