REGN
Regeneron Pharmaceuticals Inc
Price:  
521.00 
USD
Volume:  
964,847.00
United States | Biotechnology
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Regeneron WACC - Weighted Average Cost of Capital

The WACC of Regeneron Pharmaceuticals Inc (REGN) is 9.5%.

The Cost of Equity of Regeneron Pharmaceuticals Inc (REGN) is 9.75%.
The Cost of Debt of Regeneron Pharmaceuticals Inc (REGN) is 4.25%.

Range Selected
Cost of equity 8.50% - 11.00% 9.75%
Tax rate 7.80% - 9.00% 8.40%
Cost of debt 4.00% - 4.50% 4.25%
WACC 8.3% - 10.7% 9.5%
WACC

Regeneron WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.02 1.1
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.50% 11.00%
Tax rate 7.80% 9.00%
Debt/Equity ratio 0.05 0.05
Cost of debt 4.00% 4.50%
After-tax WACC 8.3% 10.7%
Selected WACC 9.5%

Regeneron'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 Regeneron:

cost_of_equity (9.75%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.02) + 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.