TLOG WACC - Weighted Average Cost of Capital
The WACC of TetraLogic Pharmaceuticals Corp (TLOG) is 4.1%.
| Range | Selected | |
| Cost of equity | 5.6% - 10361.3% | 5183.45% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 3.7% - 4.6% | 4.1% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.37 | 1849.37 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.6% | 10361.3% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 11416.58 | 11416.58 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 3.7% | 4.6% |
| Selected WACC | 4.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| TLOG | TetraLogic Pharmaceuticals Corp | 11416.59 | -6.51 | 0 |
| ARNI | Arno Therapeutics Inc | 425.09 | 1.17 | 0 |
| BSSP | Cantech Holding Inc | 1416.55 | 0 | 0 |
| CAPS | Capstone Therapeutics Corp | 0.35 | 1.24 | 0.99 |
| GOSS | Gossamer Bio Inc | 0.7 | 1.61 | 1.07 |
| HSTC | HST Global Inc | 0 | 0.82 | 0.82 |
| NNBP | Nanobac Pharmaceuticals Inc | 16520.38 | 0 | 0 |
| PPCB | Propanc Biopharma Inc | 0.02 | -1.56 | -1.54 |
| RCKT | Rocket Pharmaceuticals Inc | 0.08 | 1.51 | 1.43 |
| SPHS | Sophiris Bio Inc | 203394 | 1.78 | 0 |
| Low | High | |
| Unlevered beta | 0 | 0.33 |
| Relevered beta | 0.06 | 2759.76 |
| Adjusted relevered beta | 0.37 | 1849.37 |
TLOG'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 TLOG:
cost_of_equity (5,183.45%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.37) + 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.