THRN WACC - Weighted Average Cost of Capital
The WACC of Thorne Healthtech Inc (THRN) is 8.3%.
| Range | Selected | |
| Cost of equity | 7.2% - 9.7% | 8.45% |
| Tax rate | 4.6% - 7.0% | 5.8% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 7.1% - 9.6% | 8.3% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.73 | 0.87 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.2% | 9.7% |
| Tax rate | 4.6% | 7.0% |
| Debt/Equity ratio | 0.03 | 0.03 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 7.1% | 9.6% |
| Selected WACC | 8.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| THRN | Thorne Healthtech Inc | 0.03 | -0.01 | -0.01 |
| COTY | Coty Inc | 0.9 | 0.9 | 0.48 |
| EL | Estee Lauder Companies Inc | 0.24 | 1.45 | 1.18 |
| EPC | Edgewell Personal Care Co | 1.02 | 0.6 | 0.31 |
| IPAR | Inter Parfums Inc | 0.04 | 0.94 | 0.9 |
| NUS | NU Skin Enterprises Inc | 0.88 | 1.05 | 0.57 |
| OLPX | Olaplex Holdings Inc | 0.68 | 1.36 | 0.83 |
| SKIN | Beauty Health Co | 2.29 | 1.83 | 0.58 |
| USNA | USANA Health Sciences Inc | 0.04 | 0.92 | 0.89 |
| Low | High | |
| Unlevered beta | 0.58 | 0.78 |
| Relevered beta | 0.6 | 0.81 |
| Adjusted relevered beta | 0.73 | 0.87 |
THRN'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 THRN:
cost_of_equity (8.45%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.73) + 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.