The WACC of Helix Biopharma Corp (HBP.TO) is 8.4%.
Range | Selected | |
Cost of equity | 10.0% - 16.2% | 13.1% |
Tax rate | 25.9% - 26.5% | 26.2% |
Cost of debt | 5.0% - 5.0% | 5% |
WACC | 6.9% - 9.9% | 8.4% |
Category | Low | High |
Long-term bond rate | 3.2% | 3.7% |
Equity market risk premium | 5.1% | 6.1% |
Adjusted beta | 1.35 | 1.97 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 10.0% | 16.2% |
Tax rate | 25.9% | 26.5% |
Debt/Equity ratio | 1 | 1 |
Cost of debt | 5.0% | 5.0% |
After-tax WACC | 6.9% | 9.9% |
Selected WACC | 8.4% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
HBP.TO | Helix Biopharma Corp | 0.88 | 1.07 | 0.65 |
ACHV | Achieve Life Sciences Inc | 0.09 | 1.81 | 1.69 |
AGE | AgeX Therapeutics Inc | 0.65 | -0.7 | -0.47 |
ALNA | Allena Pharmaceuticals Inc | 0.77 | 1.14 | 0.73 |
ATNM | Actinium Pharmaceuticals Inc | 0 | 1.91 | 1.91 |
FSTX | F-Star Therapeutics Inc | 0.06 | 1.01 | 0.97 |
QLGN | Qualigen Therapeutics Inc | 0.25 | 1.76 | 1.48 |
SYN | Synthetic Biologics Inc | 0.02 | 1.38 | 1.36 |
SZLS.TO | StageZero Life Sciences Ltd | 0.5 | 0.02 | 0.01 |
WINT | Windtree Therapeutics Inc | 0.19 | 1.9 | 1.66 |
YTEN | Yield10 Bioscience Inc | 3.51 | 0.06 | 0.02 |
Low | High | |
Unlevered beta | 0.73 | 1.36 |
Relevered beta | 1.52 | 2.45 |
Adjusted relevered beta | 1.35 | 1.97 |
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 HBP.TO:
cost_of_equity (13.10%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (1.35) + 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.