WLLW.TO WACC - Weighted Average Cost of Capital
The WACC of Willow Biosciences Inc (WLLW.TO) is 9.1%.
| Range | Selected | |
| Cost of equity | 9.4% - 12.4% | 10.9% |
| Tax rate | 0.0% - 0.0% | 0% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.0% - 10.1% | 9.1% |
| Category | Low | High |
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 1.22 | 1.35 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.4% | 12.4% |
| Tax rate | 0.0% | 0.0% |
| Debt/Equity ratio | 0.45 | 0.45 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.0% | 10.1% |
| Selected WACC | 9.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| WLLW.TO | Willow Biosciences Inc | 0.45 | 1.31 | 0.9 |
| AEZS.TO | Aeterna Zentaris Inc | 0.03 | 1.92 | 1.87 |
| ATNF | 180 Life Sciences Corp | 0.03 | 1.88 | 1.82 |
| ATNM | Actinium Pharmaceuticals Inc | 0 | 1.96 | 1.96 |
| DYAI | Dyadic International Inc | 0.17 | 0.93 | 0.8 |
| ONC.TO | Oncolytics Biotech Inc | 0.01 | 0.99 | 0.98 |
| PSTI | Pluristem Therapeutics Inc | 0.74 | 1.87 | 1.07 |
| PTN | Palatin Technologies Inc | 0.01 | -0.17 | -0.17 |
| SLNO | Soleno Therapeutics Inc | 0.01 | 0.35 | 0.34 |
| Low | High | |
| Unlevered beta | 0.92 | 1.05 |
| Relevered beta | 1.33 | 1.52 |
| Adjusted relevered beta | 1.22 | 1.35 |
WLLW.TO'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 WLLW.TO:
cost_of_equity (10.90%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (1.22) + 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.