SLRN WACC - Weighted Average Cost of Capital
The WACC of ACELYRIN Inc (SLRN) is 6.7%.
| Range | Selected | |
| Cost of equity | 8.4% - 11.0% | 9.7% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.1% - 7.3% | 6.7% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 1 | 1.1 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.4% | 11.0% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.1% | 7.3% |
| Selected WACC | 6.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SLRN | ACELYRIN Inc | 1.03 | 0.98 | 0.56 |
| 950220.KQ | Neoimmunetech Inc (Pre-reincorporation) | 0 | 0.62 | 0.62 |
| AKRO | Akero Therapeutics Inc | 0.01 | 0.85 | 0.85 |
| DVAX | Dynavax Technologies Corp | 0.19 | 0.45 | 0.4 |
| Low | High | |
| Unlevered beta | 0.57 | 0.61 |
| Relevered beta | 1 | 1.15 |
| Adjusted relevered beta | 1 | 1.1 |
SLRN'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 SLRN:
cost_of_equity (9.70%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1) + 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.