ZSAN
Zosano Pharma Corp
Price:  
0.56 
USD
Volume:  
1,155,060.00
United States | Health Care Equipment & Supplies
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ZSAN WACC - Weighted Average Cost of Capital

The WACC of Zosano Pharma Corp (ZSAN) is 7.3%.

The Cost of Equity of Zosano Pharma Corp (ZSAN) is 9.05%.
The Cost of Debt of Zosano Pharma Corp (ZSAN) is 8.50%.

Range Selected
Cost of equity 5.10% - 13.00% 9.05%
Tax rate 27.00% - 27.00% 27.00%
Cost of debt 7.00% - 10.00% 8.50%
WACC 5.1% - 9.4% 7.3%
WACC

ZSAN WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 4.2% 5.2%
Adjusted beta 0.47 1.69
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.10% 13.00%
Tax rate 27.00% 27.00%
Debt/Equity ratio 1.75 1.75
Cost of debt 7.00% 10.00%
After-tax WACC 5.1% 9.4%
Selected WACC 7.3%

ZSAN'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 ZSAN:

cost_of_equity (9.05%) = risk_free_rate (3.45%) + equity_risk_premium (4.70%) * adjusted_beta (0.47) + 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.