MORF
Morphic Holding Inc
Price:  
56.99 
USD
Volume:  
1,777,300.00
United States | Biotechnology
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MORF WACC - Weighted Average Cost of Capital

The WACC of Morphic Holding Inc (MORF) is 7.5%.

The Cost of Equity of Morphic Holding Inc (MORF) is 10.10%.
The Cost of Debt of Morphic Holding Inc (MORF) is 5.00%.

Range Selected
Cost of equity 7.90% - 12.30% 10.10%
Tax rate 0.20% - 0.70% 0.45%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.4% - 8.6% 7.5%
WACC

MORF WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.87 1.32
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.90% 12.30%
Tax rate 0.20% 0.70%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 6.4% 8.6%
Selected WACC 7.5%

MORF'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 MORF:

cost_of_equity (10.10%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.87) + 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.