SNDX WACC - Weighted Average Cost of Capital
The WACC of Syndax Pharmaceuticals Inc (SNDX) is 6.7%.
| Range | Selected | |
| Cost of equity | 6.5% - 9.3% | 7.9% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.7% - 7.7% | 6.7% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.58 | 0.8 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.5% | 9.3% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 0.41 | 0.41 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.7% | 7.7% |
| Selected WACC | 6.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SNDX | Syndax Pharmaceuticals Inc | 0.41 | 1.42 | 1.09 |
| ABBV | Abbvie Inc | 0.21 | 0.33 | 0.29 |
| AKRO | Akero Therapeutics Inc | 0.01 | 0.85 | 0.85 |
| AMGN | Amgen Inc | 0.41 | 0.38 | 0.29 |
| ATRA | Atara Biotherapeutics Inc | 0.97 | -0.06 | -0.03 |
| BTAI | BioXcel Therapeutics Inc | 13.48 | 1.16 | 0.11 |
| EPZM | Epizyme Inc | 0.94 | -0.39 | -0.23 |
| GILD | Gilead Sciences Inc | 0.2 | 0.38 | 0.33 |
| NWBO | Northwest Biotherapeutics Inc | 0.16 | 1.41 | 1.26 |
| RYTM | Rhythm Pharmaceuticals Inc | 0.03 | 1.92 | 1.88 |
| Low | High | |
| Unlevered beta | 0.29 | 0.54 |
| Relevered beta | 0.37 | 0.7 |
| Adjusted relevered beta | 0.58 | 0.8 |
SNDX'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 SNDX:
cost_of_equity (7.90%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.58) + 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.