PANC WACC - Weighted Average Cost of Capital
The WACC of Panacos Pharmaceuticals Inc (PANC) is 32.3%.
| Range | Selected | |
| Cost of equity | 5.4% - 77.6% | 41.5% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 7.0% - 81.5% | 44.25% |
| WACC | 5.2% - 59.5% | 32.3% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.33 | 12.98 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 77.6% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 360011.19 | 360011.19 |
| Cost of debt | 7.0% | 81.5% |
| After-tax WACC | 5.2% | 59.5% |
| Selected WACC | 32.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| PANC | Panacos Pharmaceuticals Inc | 360011.2 | 0 | 0 |
| GOSS | Gossamer Bio Inc | 0.84 | 1.98 | 1.23 |
| HSTC | HST Global Inc | 0 | 0.79 | 0.79 |
| NNBP | Nanobac Pharmaceuticals Inc | 16520.38 | 0 | 0 |
| RCKT | Rocket Pharmaceuticals Inc | 0.03 | 1.99 | 1.95 |
| Low | High | |
| Unlevered beta | 0.47 | 0.96 |
| Relevered beta | 0 | 18.88 |
| Adjusted relevered beta | 0.33 | 12.98 |
PANC'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 PANC:
cost_of_equity (41.50%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.33) + 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.