KPTI
Karyopharm Therapeutics Inc
Price:  
4.20 
USD
Volume:  
112,059.00
United States | Biotechnology
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KPTI WACC - Weighted Average Cost of Capital

The WACC of Karyopharm Therapeutics Inc (KPTI) is 6.3%.

The Cost of Equity of Karyopharm Therapeutics Inc (KPTI) is 11.75%.
The Cost of Debt of Karyopharm Therapeutics Inc (KPTI) is 5.50%.

Range Selected
Cost of equity 8.60% - 14.90% 11.75%
Tax rate 0.20% - 0.20% 0.20%
Cost of debt 4.00% - 7.00% 5.50%
WACC 4.6% - 8.0% 6.3%
WACC

KPTI WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.03 1.8
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.60% 14.90%
Tax rate 0.20% 0.20%
Debt/Equity ratio 7.19 7.19
Cost of debt 4.00% 7.00%
After-tax WACC 4.6% 8.0%
Selected WACC 6.3%

KPTI'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 KPTI:

cost_of_equity (11.75%) = 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.