CTXR
Citius Pharmaceuticals Inc
Price:  
0.70 
USD
Volume:  
122,647.00
United States | Pharmaceuticals
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CTXR WACC - Weighted Average Cost of Capital

The WACC of Citius Pharmaceuticals Inc (CTXR) is 8.3%.

The Cost of Equity of Citius Pharmaceuticals Inc (CTXR) is 11.65%.
The Cost of Debt of Citius Pharmaceuticals Inc (CTXR) is 5.00%.

Range Selected
Cost of equity 10.30% - 13.00% 11.65%
Tax rate 0.90% - 1.60% 1.25%
Cost of debt 5.00% - 5.00% 5.00%
WACC 7.6% - 9.0% 8.3%
WACC

CTXR WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.39 1.46
Additional risk adjustments 0.0% 0.5%
Cost of equity 10.30% 13.00%
Tax rate 0.90% 1.60%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 7.6% 9.0%
Selected WACC 8.3%

CTXR'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 CTXR:

cost_of_equity (11.65%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.39) + 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.