NAVB WACC - Weighted Average Cost of Capital
The WACC of Navidea Biopharmaceuticals Inc (NAVB) is 7.2%.
| Range | Selected | |
| Cost of equity | 49.6% - 213.0% | 131.3% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 7.0% - 9.7% | 8.35% |
| WACC | 5.5% - 8.8% | 7.2% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 9.94 | 37.17 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 49.6% | 213.0% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 120.9 | 120.9 |
| Cost of debt | 7.0% | 9.7% |
| After-tax WACC | 5.5% | 8.8% |
| Selected WACC | 7.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| NAVB | Navidea Biopharmaceuticals Inc | 120.9 | -40.94 | -0.46 |
| ADTX | ADiTx Therapeutics Inc | 2.06 | 0.49 | 0.2 |
| AGE | AgeX Therapeutics Inc | 0.65 | -0.7 | -0.47 |
| GNBT | Generex Biotechnology Corp | 152.88 | -0.08 | 0 |
| LIFE | aTyr Pharma Inc | 0.01 | 1.48 | 1.47 |
| MLND | Millendo Therapeutics Inc | 0.01 | 0.45 | 0.44 |
| VRDN | Viridian Therapeutics Inc | 0.02 | 1.66 | 1.63 |
| WINT | Windtree Therapeutics Inc | 0.33 | 1.61 | 1.3 |
| YTEN | Yield10 Bioscience Inc | 3.51 | 0.06 | 0.02 |
| Low | High | |
| Unlevered beta | 0.05 | 0.39 |
| Relevered beta | 14.34 | 54.99 |
| Adjusted relevered beta | 9.94 | 37.17 |
NAVB'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 NAVB:
cost_of_equity (131.30%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (9.94) + 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.