NAVB WACC - Weighted Average Cost of Capital
The WACC of Navidea Biopharmaceuticals Inc (NAVB) is 6.9%.
| Range | Selected | |
| Cost of equity | 24.4% - 43.7% | 34.05% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 7.0% - 9.7% | 8.35% |
| WACC | 5.7% - 8.1% | 6.9% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 4.47 | 6.94 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 24.4% | 43.7% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 34.54 | 34.54 |
| Cost of debt | 7.0% | 9.7% |
| After-tax WACC | 5.7% | 8.1% |
| Selected WACC | 6.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| NAVB | Navidea Biopharmaceuticals Inc | 34.54 | -51.35 | -1.96 |
| ADTX | ADiTx Therapeutics Inc | 1.57 | 0.62 | 0.29 |
| 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 | 1.74 | 1.71 |
| WINT | Windtree Therapeutics Inc | 0.23 | 1.76 | 1.51 |
| YTEN | Yield10 Bioscience Inc | 3.51 | 0.06 | 0.02 |
| Low | High | |
| Unlevered beta | 0.07 | 0.41 |
| Relevered beta | 6.18 | 9.87 |
| Adjusted relevered beta | 4.47 | 6.94 |
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 (34.05%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (4.47) + 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.