ENZN WACC - Weighted Average Cost of Capital
The WACC of Enzon Pharmaceuticals Inc (ENZN) is 5.9%.
| Range | Selected | |
| Cost of equity | 5.8% - 9.1% | 7.45% |
| Tax rate | 7.7% - 20.0% | 13.85% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.2% - 6.5% | 5.9% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.43 | 0.75 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.8% | 9.1% |
| Tax rate | 7.7% | 20.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.2% | 6.5% |
| Selected WACC | 5.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ENZN | Enzon Pharmaceuticals Inc | 1.1 | 0.23 | 0.12 |
| ADTX | ADiTx Therapeutics Inc | 2.06 | 0.47 | 0.17 |
| GNBT | Generex Biotechnology Corp | 152.88 | -0.08 | 0 |
| LIFE | aTyr Pharma Inc | 0.01 | 1.48 | 1.46 |
| MLND | Millendo Therapeutics Inc | 0.01 | 0.45 | 0.44 |
| NAVB | Navidea Biopharmaceuticals Inc | 120.9 | -0.13 | 0 |
| WINT | Windtree Therapeutics Inc | 0.1 | 1.88 | 1.73 |
| YTEN | Yield10 Bioscience Inc | 3.51 | 0.06 | 0.02 |
| Low | High | |
| Unlevered beta | 0.1 | 0.22 |
| Relevered beta | 0.15 | 0.63 |
| Adjusted relevered beta | 0.43 | 0.75 |
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 (7.45%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.43) + 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.