SZLS.TO WACC - Weighted Average Cost of Capital
The WACC of StageZero Life Sciences Ltd (SZLS.TO) is 7.7%.
| Range | Selected | |
| Cost of equity | 7.6% - 12.5% | 10.05% |
| Tax rate | 25.9% - 26.5% | 26.2% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 6.1% - 9.4% | 7.7% |
| Category | Low | High |
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.88 | 1.37 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.6% | 12.5% |
| Tax rate | 25.9% | 26.5% |
| Debt/Equity ratio | 0.51 | 0.51 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 6.1% | 9.4% |
| Selected WACC | 7.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SZLS.TO | StageZero Life Sciences Ltd | 0.51 | 0.27 | 0.2 |
| ACHV | Achieve Life Sciences Inc | 0.12 | 1.69 | 1.55 |
| AGE | AgeX Therapeutics Inc | 0.65 | -0.7 | -0.47 |
| ALNA | Allena Pharmaceuticals Inc | 0.77 | 1.14 | 0.73 |
| FSTX | F-Star Therapeutics Inc | 0.06 | 1.01 | 0.97 |
| SYN | Synthetic Biologics Inc | 0.02 | 1.38 | 1.36 |
| VCNX | Vaccinex Inc | 0.06 | 1.53 | 1.47 |
| VRDN | Viridian Therapeutics Inc | 0.02 | 1.7 | 1.68 |
| WINT | Windtree Therapeutics Inc | 4.9 | 1.82 | 0.4 |
| YTEN | Yield10 Bioscience Inc | 3.51 | 0.06 | 0.02 |
| Low | High | |
| Unlevered beta | 0.59 | 1.13 |
| Relevered beta | 0.82 | 1.55 |
| Adjusted relevered beta | 0.88 | 1.37 |
SZLS.TO'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 SZLS.TO:
cost_of_equity (10.05%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.88) + 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.