PHIO WACC - Weighted Average Cost of Capital
The WACC of Phio Pharmaceuticals Corp (PHIO) is 5.8%.
| Range | Selected | |
| Cost of equity | 5.7% - 10.2% | 7.95% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.7% - 6.9% | 5.8% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.4 | 0.96 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.7% | 10.2% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.7% | 6.9% |
| Selected WACC | 5.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| PHIO | Phio Pharmaceuticals Corp | 0.96 | 3.13 | 1.84 |
| BSYI | Biosyntech Inc | 76247.6 | 0.28 | 0 |
| IMNPQ | Immune Pharmaceuticals Inc | 27.49 | 1.53 | 0.07 |
| IMUN | Immune Therapeutics Inc | 0.14 | 0.06 | 0.05 |
| LBL.V | Lattice Biologics Ltd | 0.78 | 1.05 | 0.67 |
| MRNA | Moderna Inc | 0.01 | 0.99 | 0.98 |
| MYMX | Mymetics Corp | 1880462.6 | 0.57 | 0 |
| PKPH | Peak Pharmaceuticals Inc | 0.39 | 0.94 | 0.73 |
| RCHA | Rich Pharmaceuticals Inc | 3.06 | 1.5 | 0.46 |
| 950160.KQ | Kolon TissueGene Inc | 0 | 0.79 | 0.79 |
| Low | High | |
| Unlevered beta | 0.31 | 0.7 |
| Relevered beta | 0.1 | 0.94 |
| Adjusted relevered beta | 0.4 | 0.96 |
PHIO'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 PHIO:
cost_of_equity (7.95%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.4) + 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.