SNNAQ
Sienna Biopharmaceuticals Inc
Price:  
0.00 
USD
Volume:  
27,840.00
United States | Pharmaceuticals
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SNNAQ WACC - Weighted Average Cost of Capital

The WACC of Sienna Biopharmaceuticals Inc (SNNAQ) is 3.9%.

The Cost of Equity of Sienna Biopharmaceuticals Inc (SNNAQ) is 175,824.70%.
The Cost of Debt of Sienna Biopharmaceuticals Inc (SNNAQ) is 5.00%.

Range Selected
Cost of equity 49,379.80% - 302,269.60% 175,824.70%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 5.00% - 5.00% 5.00%
WACC 3.7% - 4.0% 3.9%
WACC

SNNAQ WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 10733.9 53975.84
Additional risk adjustments 0.0% 0.5%
Cost of equity 49,379.80% 302,269.60%
Tax rate 26.20% 27.00%
Debt/Equity ratio 974666.75 974666.75
Cost of debt 5.00% 5.00%
After-tax WACC 3.7% 4.0%
Selected WACC 3.9%

SNNAQ'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 SNNAQ:

cost_of_equity (175,824.70%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (10733.9) + 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.