VGLS WACC - Weighted Average Cost of Capital
The WACC of VG Life Sciences Inc (VGLS) is 5.6%.
| Range | Selected | |
| Cost of equity | 207.4% - 509.9% | 358.65% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.8% - 6.4% | 5.6% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 44.25 | 90.19 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 207.4% | 509.9% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 183.04 | 183.04 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.8% | 6.4% |
| Selected WACC | 5.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| VGLS | VG Life Sciences Inc | 183.04 | 87.78 | 0.65 |
| APC.V | Advanced Proteome Therapeutics Corporation | 0.46 | 1.95 | 1.46 |
| BIEI | Premier Biomedical Inc | 0.13 | 0.51 | 0.46 |
| CAPS | Capstone Therapeutics Corp | 0.35 | 1.24 | 0.99 |
| IMUC | ImmunoCellular Therapeutics Ltd | 0.23 | 1.19 | 1.01 |
| NSPX | Inspyr Therapeutics Inc | 2.77 | 1.09 | 0.36 |
| NSTM | Novelstem International Corp | 3.54 | 1.81 | 0.5 |
| OBMP | OncBioMune Pharmaceuticals Inc | 0 | 1.09 | 1.09 |
| PAS.V | Pascal Biosciences Inc | 0.25 | 1.57 | 1.33 |
| PPCB | Propanc Biopharma Inc | 0.02 | -1.56 | -1.54 |
| WAVE.V | Waverley Pharma Inc | 5.68 | 0.5 | 0.1 |
| Low | High | |
| Unlevered beta | 0.5 | 0.99 |
| Relevered beta | 65.55 | 134.12 |
| Adjusted relevered beta | 44.25 | 90.19 |
VGLS'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 VGLS:
cost_of_equity (358.65%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (44.25) + 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.