YTEN
Yield10 Bioscience Inc
Price:  
2.88 
USD
Volume:  
384,321.00
United States | Biotechnology
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YTEN WACC - Weighted Average Cost of Capital

The WACC of Yield10 Bioscience Inc (YTEN) is 8.0%.

The Cost of Equity of Yield10 Bioscience Inc (YTEN) is 11.60%.
The Cost of Debt of Yield10 Bioscience Inc (YTEN) is 7.00%.

Range Selected
Cost of equity 8.40% - 14.80% 11.60%
Tax rate 0.50% - 0.80% 0.65%
Cost of debt 7.00% - 7.00% 7.00%
WACC 7.3% - 8.7% 8.0%
WACC

YTEN WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.98 1.77
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.40% 14.80%
Tax rate 0.50% 0.80%
Debt/Equity ratio 3.51 3.51
Cost of debt 7.00% 7.00%
After-tax WACC 7.3% 8.7%
Selected WACC 8.0%

YTEN'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 YTEN:

cost_of_equity (11.60%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.98) + 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.