MNKD
MannKind Corp
Price:  
3.77 
USD
Volume:  
1,824,348.00
United States | Biotechnology
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MNKD WACC - Weighted Average Cost of Capital

The WACC of MannKind Corp (MNKD) is 9.8%.

The Cost of Equity of MannKind Corp (MNKD) is 11.15%.
The Cost of Debt of MannKind Corp (MNKD) is 4.90%.

Range Selected
Cost of equity 9.60% - 12.70% 11.15%
Tax rate 0.20% - 4.00% 2.10%
Cost of debt 4.70% - 5.10% 4.90%
WACC 8.6% - 11.1% 9.8%
WACC

MNKD WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.24 1.4
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.60% 12.70%
Tax rate 0.20% 4.00%
Debt/Equity ratio 0.25 0.25
Cost of debt 4.70% 5.10%
After-tax WACC 8.6% 11.1%
Selected WACC 9.8%

MNKD'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 MNKD:

cost_of_equity (11.15%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.24) + 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.