YTEN
Yield10 Bioscience Inc
Price:  
2.88 
USD
Volume:  
384,321
United States | Biotechnology

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 11.6%.
The Cost of Debt of Yield10 Bioscience Inc (YTEN) is 7%.

RangeSelected
Cost of equity8.4% - 14.8%11.6%
Tax rate0.5% - 0.8%0.65%
Cost of debt7.0% - 7.0%7%
WACC7.3% - 8.7%8.0%
WACC

YTEN WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium4.6%5.6%
Adjusted beta0.981.77
Additional risk adjustments0.0%0.5%
Cost of equity8.4%14.8%
Tax rate0.5%0.8%
Debt/Equity ratio
3.513.51
Cost of debt7.0%7.0%
After-tax WACC7.3%8.7%
Selected WACC8.0%

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.