HALO
Halozyme Therapeutics Inc
Price:  
61.19 
USD
Volume:  
1,098,414.00
United States | Biotechnology
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HALO WACC - Weighted Average Cost of Capital

The WACC of Halozyme Therapeutics Inc (HALO) is 8.2%.

The Cost of Equity of Halozyme Therapeutics Inc (HALO) is 9.20%.
The Cost of Debt of Halozyme Therapeutics Inc (HALO) is 4.25%.

Range Selected
Cost of equity 7.90% - 10.50% 9.20%
Tax rate 19.00% - 19.60% 19.30%
Cost of debt 4.00% - 4.50% 4.25%
WACC 7.1% - 9.3% 8.2%
WACC

HALO WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.88 1
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.90% 10.50%
Tax rate 19.00% 19.60%
Debt/Equity ratio 0.2 0.2
Cost of debt 4.00% 4.50%
After-tax WACC 7.1% 9.3%
Selected WACC 8.2%

HALO'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 HALO:

cost_of_equity (9.20%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.88) + 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.