PHGE
Biomx Inc
Price:  
0.51 
USD
Volume:  
38,122.00
Israel | Biotechnology
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PHGE WACC - Weighted Average Cost of Capital

The WACC of Biomx Inc (PHGE) is 8.8%.

The Cost of Equity of Biomx Inc (PHGE) is 12.70%.
The Cost of Debt of Biomx Inc (PHGE) is 5.00%.

Range Selected
Cost of equity 9.40% - 16.00% 12.70%
Tax rate 0.10% - 0.10% 0.10%
Cost of debt 5.00% - 5.00% 5.00%
WACC 7.2% - 10.5% 8.8%
WACC

PHGE WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.21 1.98
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.40% 16.00%
Tax rate 0.10% 0.10%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 7.2% 10.5%
Selected WACC 8.8%

PHGE'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 PHGE:

cost_of_equity (12.70%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.21) + 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.