TCRR
TCR2 Therapeutics Inc
Price:  
1.48 
USD
Volume:  
3,913,310
United States | Biotechnology

TCRR WACC - Weighted Average Cost of Capital

The WACC of TCR2 Therapeutics Inc (TCRR) is 8.2%.

The Cost of Equity of TCR2 Therapeutics Inc (TCRR) is 11.4%.
The Cost of Debt of TCR2 Therapeutics Inc (TCRR) is 5%.

RangeSelected
Cost of equity9.2% - 13.6%11.4%
Tax rate0.2% - 0.2%0.2%
Cost of debt5.0% - 5.0%5%
WACC7.1% - 9.3%8.2%
WACC

TCRR WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium4.6%5.6%
Adjusted beta1.161.55
Additional risk adjustments0.0%0.5%
Cost of equity9.2%13.6%
Tax rate0.2%0.2%
Debt/Equity ratio
11
Cost of debt5.0%5.0%
After-tax WACC7.1%9.3%
Selected WACC8.2%

TCRR'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 TCRR:

cost_of_equity (11.40%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.16) + 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.