RGRX WACC - Weighted Average Cost of Capital
The WACC of RegeneRx Biopharmaceuticals Inc (RGRX) is 5.4%.
| Range | Selected | |
| Cost of equity | 4336.5% - 11573.6% | 7955.05% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.6% - 6.2% | 5.4% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 941.88 | 2065.85 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4336.5% | 11573.6% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 4575.87 | 4575.87 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.6% | 6.2% |
| Selected WACC | 5.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| RGRX | RegeneRx Biopharmaceuticals Inc | 4575.87 | -94.39 | -0.03 |
| AGE | AgeX Therapeutics Inc | 0.65 | -0.7 | -0.47 |
| ALNA | Allena Pharmaceuticals Inc | 0.77 | 1.14 | 0.73 |
| ATNM | Actinium Pharmaceuticals Inc | 0 | 1.96 | 1.96 |
| FSTX | F-Star Therapeutics Inc | 0.06 | 1.01 | 0.97 |
| SLNO | Soleno Therapeutics Inc | 0.01 | 0.35 | 0.34 |
| SYN | Synthetic Biologics Inc | 0.02 | 1.38 | 1.36 |
| SZLS.TO | StageZero Life Sciences Ltd | 0.5 | 0.02 | 0.01 |
| WINT | Windtree Therapeutics Inc | 0.33 | 1.61 | 1.3 |
| YTEN | Yield10 Bioscience Inc | 3.51 | 0.06 | 0.02 |
| Low | High | |
| Unlevered beta | 0.21 | 0.83 |
| Relevered beta | 1405.3 | 3082.87 |
| Adjusted relevered beta | 941.88 | 2065.85 |
RGRX'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 RGRX:
cost_of_equity (7,955.05%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (941.88) + 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.