ONCT WACC - Weighted Average Cost of Capital
The WACC of Oncternal Therapeutics Inc (ONCT) is 6.2%.
| Range | Selected | |
| Cost of equity | 6.8% - 10.7% | 8.75% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.3% - 7.2% | 6.2% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.65 | 1.05 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.8% | 10.7% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.3% | 7.2% |
| Selected WACC | 6.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ONCT | Oncternal Therapeutics Inc | 1.04 | -0.78 | -0.44 |
| 950220.KQ | Neoimmunetech Inc (Pre-reincorporation) | 0.01 | 0.06 | 0.06 |
| ABBV | Abbvie Inc | 0.2 | 0.31 | 0.27 |
| AMGN | Amgen Inc | 0.37 | 0.35 | 0.28 |
| BLU.TO | BELLUS Health Inc | 0 | 0.67 | 0.67 |
| CUE | Cue Biopharma Inc | 0.08 | 1.74 | 1.64 |
| GMDA | Gamida Cell Ltd | 17.12 | 0.77 | 0.06 |
| LCTX | Lineage Cell Therapeutics Inc | 0 | 0.82 | 0.82 |
| NCNA | NuCana PLC | 0.57 | 1.1 | 0.78 |
| OCX | OncoCyte Corp | 0.01 | 0.11 | 0.11 |
| SPRB | Spruce Biosciences Inc | 0.53 | 0.82 | 0.59 |
| Low | High | |
| Unlevered beta | 0.27 | 0.59 |
| Relevered beta | 0.48 | 1.07 |
| Adjusted relevered beta | 0.65 | 1.05 |
ONCT'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 ONCT:
cost_of_equity (8.75%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.65) + 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.