ORGS WACC - Weighted Average Cost of Capital
The WACC of Orgenesis Inc (ORGS) is 5.2%.
| Range | Selected | |
| Cost of equity | 6.1% - 9.8% | 7.95% |
| Tax rate | 0.9% - 1.3% | 1.1% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.6% - 5.9% | 5.2% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.49 | 0.88 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.1% | 9.8% |
| Tax rate | 0.9% | 1.3% |
| Debt/Equity ratio | 2.62 | 2.62 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.6% | 5.9% |
| Selected WACC | 5.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ORGS | Orgenesis Inc | 2.62 | 0.17 | 0.05 |
| ABBV | Abbvie Inc | 0.21 | 0.34 | 0.28 |
| APTX | Aptinyx Inc | 3.83 | 0.17 | 0.04 |
| ATNF | 180 Life Sciences Corp | 0.03 | 1.88 | 1.82 |
| DYAI | Dyadic International Inc | 0.17 | 0.93 | 0.8 |
| ENOB | Enochian Biosciences Inc | 0.14 | 0 | 0 |
| ONC.TO | Oncolytics Biotech Inc | 0.01 | 0.99 | 0.98 |
| PTN | Palatin Technologies Inc | 0.01 | -0.17 | -0.17 |
| XFOR | X4 Pharmaceuticals Inc | 4.62 | 1.1 | 0.2 |
| 950220.KQ | Neoimmunetech Inc (Pre-reincorporation) | 0.01 | 0.08 | 0.08 |
| Low | High | |
| Unlevered beta | 0.07 | 0.23 |
| Relevered beta | 0.24 | 0.82 |
| Adjusted relevered beta | 0.49 | 0.88 |
ORGS'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 ORGS:
cost_of_equity (7.95%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.49) + 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.