HOOK WACC - Weighted Average Cost of Capital
The WACC of HOOKIPA Pharma Inc (HOOK) is 6.9%.
| Range | Selected | |
| Cost of equity | 7.2% - 9.6% | 8.4% |
| Tax rate | 0.1% - 0.3% | 0.2% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 5.6% - 8.3% | 6.9% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.73 | 0.84 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.2% | 9.6% |
| Tax rate | 0.1% | 0.3% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 5.6% | 8.3% |
| Selected WACC | 6.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| HOOK | HOOKIPA Pharma Inc | 1.08 | 2.41 | 1.16 |
| ABBV | Abbvie Inc | 0.21 | 0.33 | 0.28 |
| AMGN | Amgen Inc | 0.41 | 0.38 | 0.27 |
| AQB | AquaBounty Technologies Inc | 0.99 | 0.71 | 0.36 |
| CTIC | CTI Biopharma Corp | 0.09 | 0.08 | 0.07 |
| FREQ | Frequency Therapeutics Inc | 1.28 | 1.1 | 0.48 |
| GILD | Gilead Sciences Inc | 0.2 | 0.38 | 0.31 |
| OTLK | Outlook Therapeutics Inc | 0.68 | 0.7 | 0.41 |
| RCEL | AVITA Medical Inc | 0.25 | 1.67 | 1.33 |
| TNXP | Tonix Pharmaceuticals Holding Corp | 0.03 | 1.21 | 1.17 |
| TTOO | T2 Biosystems Inc | 10.98 | -1.1 | -0.09 |
| Low | High | |
| Unlevered beta | 0.31 | 0.41 |
| Relevered beta | 0.6 | 0.76 |
| Adjusted relevered beta | 0.73 | 0.84 |
HOOK'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 HOOK:
cost_of_equity (8.40%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.73) + 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.