ENZN
Enzon Pharmaceuticals Inc
Price:  
0.08 
USD
Volume:  
75,150.00
United States | Biotechnology
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ENZN WACC - Weighted Average Cost of Capital

The WACC of Enzon Pharmaceuticals Inc (ENZN) is 5.9%.

The Cost of Equity of Enzon Pharmaceuticals Inc (ENZN) is 7.55%.
The Cost of Debt of Enzon Pharmaceuticals Inc (ENZN) is 5.00%.

Range Selected
Cost of equity 5.90% - 9.20% 7.55%
Tax rate 7.70% - 20.00% 13.85%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.3% - 6.6% 5.9%
WACC

ENZN WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.45 0.77
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.90% 9.20%
Tax rate 7.70% 20.00%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 5.3% 6.6%
Selected WACC 5.9%

ENZN'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 ENZN:

cost_of_equity (7.55%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.45) + 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.