The WACC of MabCure Inc (MBCI) is 4.3%.
Range | Selected | |
Cost of equity | 5.4% - 25.0% | 15.2% |
Tax rate | 26.2% - 27.0% | 26.6% |
Cost of debt | 4.0% - 7.0% | 5.5% |
WACC | 3.0% - 5.6% | 4.3% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.33 | 3.59 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 5.4% | 25.0% |
Tax rate | 26.2% | 27.0% |
Debt/Equity ratio | 40.58 | 40.58 |
Cost of debt | 4.0% | 7.0% |
After-tax WACC | 3.0% | 5.6% |
Selected WACC | 4.3% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
MBCI | MabCure Inc | 40.58 | -35.86 | -1.17 |
ARNI | Arno Therapeutics Inc | 425.09 | 1.17 | 0 |
ENDV | Endonovo Therapeutics Inc | 131.53 | -1.1 | -0.01 |
GOSS | Gossamer Bio Inc | 0.7 | 1.46 | 0.97 |
HSTC | HST Global Inc | 0 | 0.78 | 0.78 |
NNBP | Nanobac Pharmaceuticals Inc | 16520.38 | 0 | 0 |
PANC | Panacos Pharmaceuticals Inc | 360011.2 | 0 | 0 |
RCKT | Rocket Pharmaceuticals Inc | 0.07 | 1.44 | 1.37 |
Low | High | |
Unlevered beta | 0 | 0.16 |
Relevered beta | 0 | 4.87 |
Adjusted relevered beta | 0.33 | 3.59 |
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 MBCI:
cost_of_equity (15.20%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.33) + 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.