VYNE WACC - Weighted Average Cost of Capital
The WACC of Vyne Therapeutics Inc (VYNE) is 7.0%.
| Range | Selected | |
| Cost of equity | 6.1% - 11.9% | 9% |
| Tax rate | 0.0% - 0.1% | 0.05% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.5% - 8.5% | 7.0% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.48 | 1.26 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.1% | 11.9% |
| Tax rate | 0.0% | 0.1% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.5% | 8.5% |
| Selected WACC | 7.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| VYNE | Vyne Therapeutics Inc | 1.01 | 0.51 | 0.26 |
| AGRX | Agile Therapeutics Inc | 0.16 | -0.34 | -0.29 |
| BMY | Bristol-Myers Squibb Co | 0.52 | 0.13 | 0.09 |
| CBAY | Cymabay Therapeutics Inc | 0.03 | 0.93 | 0.91 |
| EOLS | Evolus Inc | 0.19 | 1.09 | 0.92 |
| JNJ | Johnson & Johnson | 0.1 | 0.14 | 0.13 |
| PRTK | Paratek Pharmaceuticals Inc | 2.01 | 1.65 | 0.55 |
| RDHL | Redhill Biopharma Ltd | 0.51 | 1.38 | 0.92 |
| RPRX | Royalty Pharma PLC | 0.39 | 0.03 | 0.02 |
| SEEL | Seelos Therapeutics Inc | 142.13 | 1.63 | 0.01 |
| XERS | Xeris Pharmaceuticals Inc | 0.3 | 1.34 | 1.03 |
| Low | High | |
| Unlevered beta | 0.13 | 0.55 |
| Relevered beta | 0.22 | 1.39 |
| Adjusted relevered beta | 0.48 | 1.26 |
VYNE'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 VYNE:
cost_of_equity (9.00%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.48) + 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.