WUHN WACC - Weighted Average Cost of Capital
The WACC of M2bio Sciences Inc (WUHN) is 4.3%.
| Range | Selected | |
| Cost of equity | 14.7% - 4056.1% | 2035.4% |
| Tax rate | 10.1% - 20.3% | 15.2% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.5% - 4.2% | 4.3% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 2.35 | 723.44 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 14.7% | 4056.1% |
| Tax rate | 10.1% | 20.3% |
| Debt/Equity ratio | 21540.89 | 21540.89 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.5% | 4.2% |
| Selected WACC | 4.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| WUHN | M2bio Sciences Inc | 21540.89 | -21.06 | 0 |
| AIDA | Aida Pharmaceuticals Inc | 6179.3 | 1.44 | 0 |
| ALIM | Alimera Sciences Inc | 0.21 | 0.21 | 0.18 |
| AOXG | Aoxing Pharmaceutical Company Inc | 29.32 | 0.29 | 0.01 |
| CPH.TO | Cipher Pharmaceuticals Inc | 0.18 | -0.2 | -0.17 |
| MDP.V | Medexus Pharmaceuticals Inc | 0.36 | 1.26 | 0.97 |
| MRV.TO | Nuvo Pharmaceuticals Inc | 6.33 | 0.83 | 0.13 |
| QLI | Qilian International Holding Group Ltd | 0.01 | -0.51 | -0.51 |
| TLGT | Teligent Inc (NEW JERSEY) | 10.08 | 1.6 | 0.17 |
| ZENA.TO | Zenabis Global Inc | 0.77 | -0.22 | -0.13 |
| Low | High | |
| Unlevered beta | 0 | 0.06 |
| Relevered beta | 3.01 | 1079.27 |
| Adjusted relevered beta | 2.35 | 723.44 |
WUHN'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 WUHN:
cost_of_equity (2,035.40%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (2.35) + 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.