IMCR WACC - Weighted Average Cost of Capital
The WACC of Immunocore Holdings PLC (IMCR) is 6.9%.
| Range | Selected | |
| Cost of equity | 6.7% - 8.9% | 7.8% |
| Tax rate | 6.6% - 7.7% | 7.15% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.2% - 7.7% | 6.9% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.61 | 0.72 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.7% | 8.9% |
| Tax rate | 6.6% | 7.7% |
| Debt/Equity ratio | 0.37 | 0.37 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.2% | 7.7% |
| Selected WACC | 6.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| IMCR | Immunocore Holdings PLC | 0.37 | 0.6 | 0.45 |
| ADAP | Adaptimmune Therapeutics PLC | 0.65 | 0.19 | 0.12 |
| ALXO | ALX Oncology Holdings Inc | 0.53 | 1.56 | 1.04 |
| AMTI | Applied Molecular Transport Inc. | 0.05 | 0.47 | 0.45 |
| FGEN | FibroGen Inc | 2.9 | 0.8 | 0.22 |
| FOLD | Amicus Therapeutics Inc | 0.21 | 0.3 | 0.25 |
| GBT | Global Blood Therapeutics Inc | 0.13 | 0.47 | 0.42 |
| LGND | Ligand Pharmaceuticals Inc | 0 | 1.11 | 1.11 |
| PRLD | Prelude Therapeutics Inc | 0 | 0.19 | 0.19 |
| ABC.L | Abcam PLC | 0.08 | 0.39 | 0.36 |
| Low | High | |
| Unlevered beta | 0.32 | 0.43 |
| Relevered beta | 0.42 | 0.58 |
| Adjusted relevered beta | 0.61 | 0.72 |
IMCR'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 IMCR:
cost_of_equity (7.80%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.61) + 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.