The WACC of Singular Genomics Systems Inc (OMIC) is 7.9%.
Range | Selected | |
Cost of equity | 7.1% - 9.4% | 8.25% |
Tax rate | 26.2% - 27.0% | 26.6% |
Cost of debt | 7.0% - 10.1% | 8.55% |
WACC | 6.8% - 9.1% | 7.9% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.7 | 0.81 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 7.1% | 9.4% |
Tax rate | 26.2% | 27.0% |
Debt/Equity ratio | 0.18 | 0.18 |
Cost of debt | 7.0% | 10.1% |
After-tax WACC | 6.8% | 9.1% |
Selected WACC | 7.9% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
OMIC | Singular Genomics Systems Inc | 0.18 | 5.6 | 4.96 |
A | Agilent Technologies Inc | 0.1 | 0.86 | 0.8 |
AVTR | Avantor Inc | 0.45 | 0.45 | 0.34 |
BIO | Bio Rad Laboratories Inc | 0.18 | 0.57 | 0.5 |
CRL | Charles River Laboratories International Inc | 0.3 | 0.42 | 0.34 |
ILMN | Illumina Inc | 0.13 | 1.04 | 0.95 |
IQV | IQVIA Holdings Inc | 0.51 | 0.63 | 0.46 |
MTD | Mettler-Toledo International Inc | 0.08 | 0.93 | 0.88 |
PKI | PerkinElmer Inc | 0.3 | 1.21 | 1 |
TMO | Thermo Fisher Scientific Inc | 0.2 | 0.56 | 0.48 |
WAT | Waters Corp | 0.08 | 0.55 | 0.52 |
Low | High | |
Unlevered beta | 0.5 | 0.8 |
Relevered beta | 0.55 | 0.72 |
Adjusted relevered beta | 0.7 | 0.81 |
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 OMIC:
cost_of_equity (8.25%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.7) + 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.