IMVT
Immunovant Inc
Price:  
15.80 
USD
Volume:  
906,005.00
United States | Biotechnology
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IMVT WACC - Weighted Average Cost of Capital

The WACC of Immunovant Inc (IMVT) is 10.5%.

The Cost of Equity of Immunovant Inc (IMVT) is 16.00%.
The Cost of Debt of Immunovant Inc (IMVT) is 5.00%.

Range Selected
Cost of equity 14.10% - 17.90% 16.00%
Tax rate 0.10% - 0.20% 0.15%
Cost of debt 5.00% - 5.00% 5.00%
WACC 9.6% - 11.5% 10.5%
WACC

IMVT WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 2.23 2.33
Additional risk adjustments 0.0% 0.5%
Cost of equity 14.10% 17.90%
Tax rate 0.10% 0.20%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 9.6% 11.5%
Selected WACC 10.5%

IMVT'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 IMVT:

cost_of_equity (16.00%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (2.23) + 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.