IMPL
Impel Neuropharma Inc
Price:  
0.24 
USD
Volume:  
858,521.00
United States | Biotechnology
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IMPL WACC - Weighted Average Cost of Capital

The WACC of Impel Neuropharma Inc (IMPL) is 5.7%.

The Cost of Equity of Impel Neuropharma Inc (IMPL) is 106.55%.
The Cost of Debt of Impel Neuropharma Inc (IMPL) is 5.00%.

Range Selected
Cost of equity 88.40% - 124.70% 106.55%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.3% - 6.0% 5.7%
WACC

IMPL WACC calculation

Category Low High
Long-term bond rate 4.2% 4.7%
Equity market risk premium 5.0% 6.0%
Adjusted beta 16.84 19.93
Additional risk adjustments 0.0% 0.5%
Cost of equity 88.40% 124.70%
Tax rate 26.20% 27.00%
Debt/Equity ratio 50.28 50.28
Cost of debt 5.00% 5.00%
After-tax WACC 5.3% 6.0%
Selected WACC 5.7%

IMPL'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 IMPL:

cost_of_equity (106.55%) = risk_free_rate (4.45%) + equity_risk_premium (5.50%) * adjusted_beta (16.84) + 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.