ONCS WACC - Weighted Average Cost of Capital
The WACC of OncoSec Medical Inc (ONCS) is 8.8%.
| Range | Selected | |
| Cost of equity | 8.3% - 14.0% | 11.15% |
| Tax rate | 4.5% - 5.8% | 5.15% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.0% - 10.7% | 8.8% |
| Category | Low | High |
| Long-term bond rate | 4.2% | 4.7% |
| Equity market risk premium | 5.0% | 6.0% |
| Adjusted beta | 0.82 | 1.48 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.3% | 14.0% |
| Tax rate | 4.5% | 5.8% |
| Debt/Equity ratio | 0.57 | 0.57 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.0% | 10.7% |
| Selected WACC | 8.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ONCS | OncoSec Medical Inc | 0.57 | -0.12 | -0.08 |
| 950220.KQ | Neoimmunetech Inc (Pre-reincorporation) | 0 | 0.44 | 0.44 |
| AEZS.TO | Aeterna Zentaris Inc | 0.03 | 1.92 | 1.88 |
| GRCL | Gracell Biotechnologies Inc | 0.02 | 1.99 | 1.95 |
| IFRX | Inflarx NV | 0.01 | 1.53 | 1.51 |
| IMV.TO | IMV Inc | 2.2 | 1.86 | 0.6 |
| MTCR | Metacrine, Inc. | 0.63 | 0.2 | 0.13 |
| MTNB | Matinas BioPharma Holdings Inc | 0 | 1.43 | 1.42 |
| NBSE | NeuBase Therapeutics Inc | 0.06 | 1.55 | 1.47 |
| RVX.TO | Resverlogix Corp | 1.1 | 0.65 | 0.32 |
| Low | High | |
| Unlevered beta | 0.54 | 1.44 |
| Relevered beta | 0.73 | 1.72 |
| Adjusted relevered beta | 0.82 | 1.48 |
ONCS'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 ONCS:
cost_of_equity (11.15%) = risk_free_rate (4.45%) + equity_risk_premium (5.50%) * adjusted_beta (0.82) + 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.