PRTT WACC - Weighted Average Cost of Capital
The WACC of Protect Pharmaceutical Corp (PRTT) is 8.6%.
| Range | Selected | |
| Cost of equity | 6.8% - 10.3% | 8.55% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.8% - 10.3% | 8.6% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.64 | 0.97 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.8% | 10.3% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.8% | 10.3% |
| Selected WACC | 8.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| PRTT | Protect Pharmaceutical Corp | 0 | 0.59 | 0.59 |
| ACER | Acer Therapeutics Inc | 0.72 | 0.43 | 0.28 |
| AKTX | Akari Therapeutics PLC | 0.1 | 0.26 | 0.25 |
| AVCN.TO | Avicanna Inc | 0 | 1.77 | 1.76 |
| AXIM | Axim Biotechnologies Inc | 2.55 | 0.2 | 0.07 |
| BUDZ | Weed Inc | 0.1 | -0.36 | -0.34 |
| LQDA | Liquidia Corp | 0.11 | 1.89 | 1.75 |
| NBRV | Nabriva Therapeutics PLC | 1.15 | 1.64 | 0.89 |
| NUMI.V | Numinus Wellness Inc | 0 | 1.05 | 1.05 |
| RVPH | Reviva Pharmaceuticals Holdings, Inc. | 0.03 | 1.27 | 1.24 |
| Low | High | |
| Unlevered beta | 0.47 | 0.95 |
| Relevered beta | 0.46 | 0.96 |
| Adjusted relevered beta | 0.64 | 0.97 |
PRTT'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 PRTT:
cost_of_equity (8.55%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.64) + 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.