XERS
Xeris Pharmaceuticals Inc
Price:  
4.94 
USD
Volume:  
2,399,987.00
United States | Pharmaceuticals
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XERS WACC - Weighted Average Cost of Capital

The WACC of Xeris Pharmaceuticals Inc (XERS) is 8.1%.

The Cost of Equity of Xeris Pharmaceuticals Inc (XERS) is 7.70%.
The Cost of Debt of Xeris Pharmaceuticals Inc (XERS) is 9.70%.

Range Selected
Cost of equity 5.70% - 9.70% 7.70%
Tax rate 0.90% - 1.70% 1.30%
Cost of debt 7.00% - 12.40% 9.70%
WACC 6.0% - 10.2% 8.1%
WACC

XERS WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.4 0.86
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.70% 9.70%
Tax rate 0.90% 1.70%
Debt/Equity ratio 0.29 0.29
Cost of debt 7.00% 12.40%
After-tax WACC 6.0% 10.2%
Selected WACC 8.1%

XERS'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 XERS:

cost_of_equity (7.70%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.4) + 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.