LOGC WACC - Weighted Average Cost of Capital
The WACC of LogicBio Therapeutics Inc (LOGC) is 6.5%.
| Range | Selected | |
| Cost of equity | 7.0% - 9.1% | 8.05% |
| Tax rate | 1.1% - 2.1% | 1.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.0% - 7.0% | 6.5% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.69 | 0.76 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.0% | 9.1% |
| Tax rate | 1.1% | 2.1% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.0% | 7.0% |
| Selected WACC | 6.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| LOGC | LogicBio Therapeutics Inc | 0.82 | 0.91 | 0.5 |
| ABBV | Abbvie Inc | 0.21 | 0.39 | 0.32 |
| AMGN | Amgen Inc | 0.41 | 0.36 | 0.26 |
| CTIC | CTI Biopharma Corp | 0.09 | 0.08 | 0.07 |
| FREQ | Frequency Therapeutics Inc | 1.28 | 1.1 | 0.49 |
| GILD | Gilead Sciences Inc | 0.21 | 0.33 | 0.27 |
| GNCA | Genocea Biosciences Inc | 74.74 | 1.36 | 0.02 |
| HTBX | Heat Biologics Inc | 0.01 | 0.32 | 0.32 |
| SVRA | Savara Inc | 0.05 | 1.04 | 0.99 |
| TTOO | T2 Biosystems Inc | 9.05 | -1.41 | -0.14 |
| 950220.KQ | Neoimmunetech Inc (Pre-reincorporation) | 0 | 0.44 | 0.44 |
| Low | High | |
| Unlevered beta | 0.27 | 0.32 |
| Relevered beta | 0.54 | 0.64 |
| Adjusted relevered beta | 0.69 | 0.76 |
LOGC'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 LOGC:
cost_of_equity (8.05%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.69) + 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.