The WACC of Biomx Inc (PHGE) is 8.9%.
Range | Selected | |
Cost of equity | 9.5% - 16.0% | 12.75% |
Tax rate | 0.1% - 0.1% | 0.1% |
Cost of debt | 5.0% - 5.0% | 5% |
WACC | 7.2% - 10.5% | 8.9% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 1.22 | 1.98 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 9.5% | 16.0% |
Tax rate | 0.1% | 0.1% |
Debt/Equity ratio | 1 | 1 |
Cost of debt | 5.0% | 5.0% |
After-tax WACC | 7.2% | 10.5% |
Selected WACC | 8.9% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
PHGE | Biomx Inc | 0.92 | 0.57 | 0.29 |
ABEO | Abeona Therapeutics Inc | 0.06 | 1.56 | 1.47 |
AEZS.TO | Aeterna Zentaris Inc | 0.03 | 1.92 | 1.87 |
ATNF | 180 Life Sciences Corp | 0.03 | 1.63 | 1.59 |
CELC | Celcuity Inc | 0.25 | 1.23 | 0.99 |
ENOB | Enochian Biosciences Inc | 0.14 | 0 | 0 |
FENC | Fennec Pharmaceuticals Inc | 0.08 | 2.04 | 1.88 |
NYMX | Nymox Pharmaceutical Corp | 0.01 | 0.02 | 0.02 |
PSTI | Pluristem Therapeutics Inc | 0.74 | 1.87 | 1.07 |
PTN | Palatin Technologies Inc | 0.02 | -0.17 | -0.17 |
XFOR | X4 Pharmaceuticals Inc | 4.2 | 0.96 | 0.18 |
Low | High | |
Unlevered beta | 0.29 | 1.07 |
Relevered beta | 1.33 | 2.46 |
Adjusted relevered beta | 1.22 | 1.98 |
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 (12.75%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.22) + 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.