RGBP
Regen BioPharma Inc
Price:  
0.06 
USD
Volume:  
13,190.00
United States | N/A
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RGBP WACC - Weighted Average Cost of Capital

The WACC of Regen BioPharma Inc (RGBP) is 4.5%.

The Cost of Equity of Regen BioPharma Inc (RGBP) is 6.20%.
The Cost of Debt of Regen BioPharma Inc (RGBP) is 4.25%.

Range Selected
Cost of equity 5.40% - 7.00% 6.20%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 4.00% - 4.50% 4.25%
WACC 4.1% - 5.0% 4.5%
WACC

RGBP WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.33 0.38
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.40% 7.00%
Tax rate 26.20% 27.00%
Debt/Equity ratio 1.21 1.21
Cost of debt 4.00% 4.50%
After-tax WACC 4.1% 5.0%
Selected WACC 4.5%

RGBP'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 RGBP:

cost_of_equity (6.20%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.33) + 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.