OGEN WACC - Weighted Average Cost of Capital
The WACC of Oragenics Inc (OGEN) is 9.2%.
| Range | Selected | |
| Cost of equity | 7.9% - 11.2% | 9.55% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.6% - 10.7% | 9.2% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.88 | 1.13 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.9% | 11.2% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 0.08 | 0.08 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.6% | 10.7% |
| Selected WACC | 9.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| OGEN | Oragenics Inc | 0.08 | 2.2 | 2.08 |
| APM | Aptorum Group Ltd | 0.46 | 1.41 | 1.05 |
| ARMP | Armata Pharmaceuticals Inc | 1.93 | 0.26 | 0.11 |
| AZRX | AzurRx BioPharma Inc | 0.02 | 1.58 | 1.56 |
| BIOC | Biocept Inc | 2.11 | 1.23 | 0.48 |
| CAPR | Capricor Therapeutics Inc | 0.01 | 2.05 | 2.04 |
| EDT.TO | Spectral Medical Inc | 0.06 | 0.69 | 0.66 |
| GALT | Galectin Therapeutics Inc | 1.31 | 1.68 | 0.86 |
| LMNL | Liminal BioSciences Inc | 0.04 | 0.66 | 0.64 |
| SBM.V | Sirona Biochem Corp | 0.14 | 1.61 | 1.46 |
| SNGX | Soligenix Inc | 0.23 | 1.48 | 1.26 |
| Low | High | |
| Unlevered beta | 0.86 | 1.26 |
| Relevered beta | 0.82 | 1.19 |
| Adjusted relevered beta | 0.88 | 1.13 |
OGEN'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 OGEN:
cost_of_equity (9.55%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.88) + 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.