INZY WACC - Weighted Average Cost of Capital
The WACC of Inozyme Pharma Inc (INZY) is 9.9%.
| Range | Selected | |
| Cost of equity | 8.6% - 13.5% | 11.05% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.8% - 12.0% | 9.9% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 1.03 | 1.54 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.6% | 13.5% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 0.18 | 0.18 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.8% | 12.0% |
| Selected WACC | 9.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| INZY | Inozyme Pharma Inc | 0.18 | 5.66 | 5.01 |
| AUTL | Autolus Therapeutics PLC | 0.6 | 1.09 | 0.76 |
| BCYC | Bicycle Therapeutics PLC | 0 | 1.76 | 1.76 |
| ETNB | 89Bio Inc | 0.03 | 1.93 | 1.89 |
| GERN | Geron Corp | 0.13 | 1.63 | 1.49 |
| GMDA | Gamida Cell Ltd | 17.12 | 0.77 | 0.06 |
| ISEE | Iveric Bio Inc | 0.02 | 2.01 | 1.99 |
| MRNA | Moderna Inc | 0.01 | 1.03 | 1.02 |
| NLTX | Neoleukin Therapeutics Inc | 0.01 | -0.35 | -0.35 |
| SELB | Selecta Biosciences Inc | 0.19 | 0.78 | 0.68 |
| SNSE | Sensei Biotherapeutics Inc | 0.11 | 1.95 | 1.81 |
| Low | High | |
| Unlevered beta | 1.02 | 1.76 |
| Relevered beta | 1.04 | 1.81 |
| Adjusted relevered beta | 1.03 | 1.54 |
INZY'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 INZY:
cost_of_equity (11.05%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.03) + 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.