IMPL WACC - Weighted Average Cost of Capital
The WACC of Impel Neuropharma Inc (IMPL) is 5.7%.
| Range | Selected | |
| Cost of equity | 88.4% - 124.7% | 106.55% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.3% - 6.0% | 5.7% |
| 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 | 88.4% | 124.7% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 50.28 | 50.28 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.3% | 6.0% |
| Selected WACC | 5.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| IMPL | Impel Neuropharma Inc | 50.28 | 3.54 | 0.09 |
| ABBV | Abbvie Inc | 0.21 | 0.33 | 0.29 |
| AMGN | Amgen Inc | 0.41 | 0.38 | 0.29 |
| BIIB | Biogen Inc | 0.34 | 0.48 | 0.38 |
| GILD | Gilead Sciences Inc | 0.2 | 0.38 | 0.33 |
| MRNA | Moderna Inc | 0.01 | 1.03 | 1.02 |
| REGN | Regeneron Pharmaceuticals Inc | 0.04 | 0.86 | 0.83 |
| VRTX | Vertex Pharmaceuticals Inc | 0 | 0.67 | 0.67 |
| 950200.KQ | Psomagen Inc | 0.03 | 0.68 | 0.66 |
| 950220.KQ | Neoimmunetech Inc (Pre-reincorporation) | 0 | 0.62 | 0.62 |
| Low | High | |
| Unlevered beta | 0.36 | 0.64 |
| Relevered beta | 24.64 | 29.25 |
| Adjusted relevered beta | 16.84 | 19.93 |
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.