REGN
Regeneron Pharmaceuticals Inc
Price:  
605.61 
USD
Volume:  
1,606,415.00
United States | Biotechnology
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

Regeneron WACC - Weighted Average Cost of Capital

The WACC of Regeneron Pharmaceuticals Inc (REGN) is 9.0%.

The Cost of Equity of Regeneron Pharmaceuticals Inc (REGN) is 9.20%.
The Cost of Debt of Regeneron Pharmaceuticals Inc (REGN) is 4.25%.

Range Selected
Cost of equity 7.60% - 10.80% 9.20%
Tax rate 7.80% - 9.00% 8.40%
Cost of debt 4.00% - 4.50% 4.25%
WACC 7.5% - 10.5% 9.0%
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 0.82 1.06
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.60% 10.80%
Tax rate 7.80% 9.00%
Debt/Equity ratio 0.04 0.04
Cost of debt 4.00% 4.50%
After-tax WACC 7.5% 10.5%
Selected WACC 9.0%

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 (9.20%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.82) + 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.