TTNP
Titan Pharmaceuticals Inc
Price:  
4.4 
USD
Volume:  
18,730
United States | Pharmaceuticals

TTNP WACC - Weighted Average Cost of Capital

The WACC of Titan Pharmaceuticals Inc (TTNP) is 8.8%.

The Cost of Equity of Titan Pharmaceuticals Inc (TTNP) is 14%.
The Cost of Debt of Titan Pharmaceuticals Inc (TTNP) is 5%.

RangeSelected
Cost of equity11.6% - 16.4%14%
Tax rate26.2% - 27.0%26.6%
Cost of debt5.0% - 5.0%5%
WACC7.6% - 10.0%8.8%
WACC

TTNP WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium4.6%5.6%
Adjusted beta1.672.06
Additional risk adjustments0.0%0.5%
Cost of equity11.6%16.4%
Tax rate26.2%27.0%
Debt/Equity ratio
11
Cost of debt5.0%5.0%
After-tax WACC7.6%10.0%
Selected WACC8.8%

TTNP'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 TTNP:

cost_of_equity (14.00%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.67) + 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.