CTMX
CytomX Therapeutics Inc
Price:  
2.60 
USD
Volume:  
3,709,273.00
United States | Biotechnology
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CTMX WACC - Weighted Average Cost of Capital

The WACC of CytomX Therapeutics Inc (CTMX) is 8.8%.

The Cost of Equity of CytomX Therapeutics Inc (CTMX) is 12.90%.
The Cost of Debt of CytomX Therapeutics Inc (CTMX) is 5.00%.

Range Selected
Cost of equity 11.00% - 14.80% 12.90%
Tax rate 0.40% - 12.30% 6.35%
Cost of debt 5.00% - 5.00% 5.00%
WACC 8.0% - 9.6% 8.8%
WACC

CTMX WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.55 1.77
Additional risk adjustments 0.0% 0.5%
Cost of equity 11.00% 14.80%
Tax rate 0.40% 12.30%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 8.0% 9.6%
Selected WACC 8.8%

CTMX'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 CTMX:

cost_of_equity (12.90%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.55) + 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.