YTEN WACC - Weighted Average Cost of Capital
The WACC of Yield10 Bioscience Inc (YTEN) is 8.0%.
| Range | Selected | |
| Cost of equity | 8.4% - 14.8% | 11.6% |
| Tax rate | 0.5% - 0.8% | 0.65% |
| Cost of debt | 7.0% - 7.0% | 7% |
| WACC | 7.3% - 8.7% | 8.0% |
| 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 | 8.4% | 14.8% |
| Tax rate | 0.5% | 0.8% |
| Debt/Equity ratio | 3.51 | 3.51 |
| Cost of debt | 7.0% | 7.0% |
| After-tax WACC | 7.3% | 8.7% |
| Selected WACC | 8.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| YTEN | Yield10 Bioscience Inc | 3.51 | 0.06 | 0.01 |
| ABBV | Abbvie Inc | 0.21 | 0.33 | 0.28 |
| ACHV | Achieve Life Sciences Inc | 0.09 | 2.06 | 1.88 |
| AGE | AgeX Therapeutics Inc | 0.65 | -0.7 | -0.42 |
| AMGN | Amgen Inc | 0.41 | 0.38 | 0.27 |
| FSTX | F-Star Therapeutics Inc | 0.06 | 1.01 | 0.96 |
| GILD | Gilead Sciences Inc | 0.2 | 0.38 | 0.31 |
| SLRX | Salarius Pharmaceuticals Inc | 0.13 | 1.63 | 1.44 |
| SZLS.TO | StageZero Life Sciences Ltd | 0.5 | 0.27 | 0.18 |
| WINT | Windtree Therapeutics Inc | 0.23 | 1.76 | 1.43 |
| Low | High | |
| Unlevered beta | 0.27 | 0.57 |
| Relevered beta | 0.97 | 2.15 |
| Adjusted relevered beta | 0.98 | 1.77 |
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.