GNPX WACC - Weighted Average Cost of Capital
The WACC of Genprex Inc (GNPX) is 8.7%.
| Range | Selected | |
| Cost of equity | 11.3% - 16.1% | 13.7% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.5% - 9.9% | 8.7% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 1.62 | 2.01 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 11.3% | 16.1% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.5% | 9.9% |
| Selected WACC | 8.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| GNPX | Genprex Inc | 1.14 | -2.81 | -1.54 |
| ABEO | Abeona Therapeutics Inc | 0.06 | 1.45 | 1.39 |
| FENC | Fennec Pharmaceuticals Inc | 0.1 | 1.95 | 1.82 |
| GRCL | Gracell Biotechnologies Inc | 0.02 | 1.99 | 1.96 |
| IFRX | Inflarx NV | 0.01 | 1.53 | 1.52 |
| IMV.TO | IMV Inc | 2.2 | 1.86 | 0.71 |
| MTCR | Metacrine, Inc. | 0.63 | 0.2 | 0.14 |
| MTNB | Matinas BioPharma Holdings Inc | 0 | 1.43 | 1.42 |
| NBSE | NeuBase Therapeutics Inc | 0.06 | 1.55 | 1.49 |
| ONCS | OncoSec Medical Inc | 0.57 | -0.12 | -0.08 |
| RVX.TO | Resverlogix Corp | 1.1 | 0.65 | 0.36 |
| Low | High | |
| Unlevered beta | 0.71 | 1.42 |
| Relevered beta | 1.93 | 2.51 |
| Adjusted relevered beta | 1.62 | 2.01 |
GNPX'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 GNPX:
cost_of_equity (13.70%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.62) + 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.