WINT WACC - Weighted Average Cost of Capital
The WACC of Windtree Therapeutics Inc (WINT) is 6.7%.
| Range | Selected | |
| Cost of equity | 15.8% - 27.5% | 21.65% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.8% - 7.7% | 6.7% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 2.6 | 4.04 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 15.8% | 27.5% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 4.9 | 4.9 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.8% | 7.7% |
| Selected WACC | 6.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| WINT | Windtree Therapeutics Inc | 4.9 | 1.82 | 0.4 |
| ACHV | Achieve Life Sciences Inc | 0.12 | 1.69 | 1.55 |
| AGE | AgeX Therapeutics Inc | 0.65 | -0.7 | -0.47 |
| FSTX | F-Star Therapeutics Inc | 0.06 | 1.01 | 0.97 |
| LIFE | aTyr Pharma Inc | 0.01 | 1.48 | 1.47 |
| MRNA | Moderna Inc | 0.01 | 1.04 | 1.04 |
| SZLS.TO | StageZero Life Sciences Ltd | 0.51 | 0.27 | 0.2 |
| VCNX | Vaccinex Inc | 0.06 | 1.53 | 1.47 |
| VRDN | Viridian Therapeutics Inc | 0.02 | 1.7 | 1.68 |
| YTEN | Yield10 Bioscience Inc | 3.51 | 0.06 | 0.02 |
| Low | High | |
| Unlevered beta | 0.74 | 1.21 |
| Relevered beta | 3.39 | 5.54 |
| Adjusted relevered beta | 2.6 | 4.04 |
WINT'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 WINT:
cost_of_equity (21.65%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (2.6) + 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.