Avenue TherapeuticsATXI -8.35%33 WACC % is 22.55% as of Jun. 28, 2026, which is 182% above its 10-year median of 8.00. GuruFocus rates ATXI with a GF Score™ of 33/100. The stock has 1 warning sign investors should review. Among 1,426 Biotechnology companies, Avenue Therapeutics ranks worse than 95.3% on this metric.
As of today (2026-06-28), Avenue Therapeutics's weighted average cost of capital is 22.55%%. Avenue Therapeutics's ROIC % is -1375.33% (calculated using TTM income statement data).
Avenue Therapeutics earns returns that do not match up to its cost of capital. It will destroy value as it grows.
For a comprehensive WACC calculation, please access the WACC Calculator.
Because it costs money to raise capital. A firm that generates higher ROIC % than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Avenue Therapeutics's weighted average cost of capital is 22.55%%. Avenue Therapeutics's ROIC % is -1375.33% (calculated using TTM income statement data).
Avenue Therapeutics earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
1. GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding latest one-year quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together.
For companies that report quarterly, GuruFocus combines all of the most recent year's quarterly debt data from the beginning of the year to the year-end and calculates the average.
For companies that report semi-annually, GuruFocus combines all of the most recent year's semi-annual debt data from the start of the year to the year-end and calculates the average.
For companies that report annually, GuruFocus combines the beginning and ending annual debt data from the most recent year and then calculates the average.
2. The WACC formula discussed above does not include Preferred Stock. Please adjust if preferred stock is considered.
3. (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
4. GuruFocus uses the latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
Related Terms
Avenue Therapeutics WACC % Historical Data
* Premium members only.
The historical data trend for Avenue Therapeutics's WACC % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Biotechnology subindustry, Avenue Therapeutics's WACC %, along with its competitors' market caps and WACC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Avenue Therapeutics WACC % vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Avenue Therapeutics's WACC % distribution charts can be found below:
* The bar in red indicates where Avenue Therapeutics's WACC % falls into.
The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. The WACC is commonly referred to as the firm's cost of capital. Generally speaking, a company's assets are financed by debt and equity. WACC is the average of the costs of these sources of financing, each of which is weighted by its respective use in the given situation. By taking a weighted average, we can see how much interest the company has to pay for every dollar it finances.
WACC
=
E
/
(E + D)
*
Cost of Equity
+
D
/
(E + D)
*
Cost of Debt
*
(1 - Tax Rate)
1. Weights:
Generally speaking, a company's assets are financed by debt and equity. We need to calculate the weight of equity and the weight of debt.
The market value of equity (E) is also called "Market Cap". As of today, Avenue Therapeutics's market capitalization (E) is $0.923 Mil.
The market value of debt is typically difficult to calculate, therefore, GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding the latest one-year quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Mar. 2026, Avenue Therapeutics's latest one-year quarterly average Book Value of Debt (D) is $0 Mil.
a) weight of equity = E / (E + D) = 0.923 / (0.923 + 0) = 1
b) weight of debt = D / (E + D) = 0 / (0.923 + 0) = 0
2. Cost of Equity:
GuruFocus uses Capital Asset Pricing Model (CAPM) to calculate the required rate of return. The formula is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
a) GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate. It is updated daily. The current risk-free rate is 4.376%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default.
b) Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. Avenue Therapeutics's beta is 3.0287.
c) (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
Cost of Equity = 4.376% + 3.0287 * 6% = 22.5482%
3. Cost of Debt:
GuruFocus uses latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
As of Mar. 2026, Avenue Therapeutics's interest expense (positive number) was $-0 Mil. Its total Book Value of Debt (D) is $0 Mil.
Cost of Debt = -0 / 0 = %.
4. Multiply by one minus TTM Tax Rate:
GuruFocus uses the most recent TTM Tax Expense divided by the most recent TTM Pre-Tax Income to calculate the tax rate. The calculated TTM tax rate is limited to between 0% and 100%. If the calculated tax rate is higher than 100%, it is set to 100%. If the calculated tax rate is less than 0%, it is set to 0%.
The latest calculated TTM Tax Rate = 0 / -1.784 = 0%.
Avenue Therapeutics's Weighted Average Cost Of Capital (WACC) for Today is calculated as:
WACC
=
E / (E + D)
*
Cost of Equity
+
D / (E + D)
*
Cost of Debt
*
(1 - Tax Rate)
=
1
*
22.5482%
+
0
*
%
*
(1 - 0%)
=
22.55%
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Avenue Therapeutics (ATXI) has a WACC % of 22.55% as of Jun. 28, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Avenue Therapeutics and its competitors. This is 182% above median its historical median of 8.00. According to the industry distribution chart, Avenue Therapeutics ranks #1359 out of 1426 companies in the Biotechnology industry, placing it in the top 95.3%.
Is Avenue Therapeutics' WACC % too high?
Avenue Therapeutics' current WACC % of 22.55% is 182% above median its 10-year median of 8.00. The Biotechnology industry median WACC % is 9.99. Avenue Therapeutics' value of 22.55% is 125.7% above this industry median. Based on the distribution chart, Avenue Therapeutics ranks #1359 out of 1426 companies in the Biotechnology industry, which is in the bottom quartile relative to peers. Overall, Avenue Therapeutics has a GF Score™ of 33/100, reflecting its overall financial health beyond just this single metric.
How does Avenue Therapeutics' WACC % compare to PTIX and EVFM?
According to the Biotechnology industry distribution chart, Avenue Therapeutics ranks #1359 out of 1426 companies for WACC %. This places Avenue Therapeutics in the lower half of its industry. The industry median WACC % is 9.99. Avenue Therapeutics' value of 22.55% is 125.7% above this benchmark. While the company's 10-year median is 8.00 vs. the industry median of 9.99, Avenue Therapeutics has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good WACC % for a Biotechnology company?
The median WACC % among Biotechnology companies is 9.99, based on 1,426 companies in the industry. Companies in the top quartile (top 25%) have a WACC % significantly above this median, while those in the bottom quartile fall well below. However, WACC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Avenue Therapeutics's current WACC % of 22.55% is 125.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high WACC % mean?
A high WACC % can signal that a stock is expensive relative to its fundamentals. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Avenue Therapeutics and its competitors. For the Biotechnology industry, the median WACC % is 9.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Avenue Therapeutics's current WACC % is 22.55%, which is 182% above median its own 10-year median of 8.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Avenue Therapeutics stock overvalued right now?
Avenue Therapeutics (ATXI) has a current WACC % of 22.55%. The current WACC % is 22.55%, which is 182% above median its 10-year median of 8.00 and 125.7% above the Biotechnology industry median of 9.99. Avenue Therapeutics' overall GF Score™ is 33/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is WACC % calculated?
WACC % is calculated from a company's financial statements. For Avenue Therapeutics (ATXI), the current WACC % is 22.55% as of Jun. 28, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Avenue Therapeutics Inc is a specialty pharmaceutical company focused on the development and commercialization of therapies for the treatment of rare and neurologic diseases. It is focused on advancing impactful therapies with the potential to overcome limitations of existing treatment options and ultimately transform patient outcomes. Current product candidates include ATX-04, a selective beta adrenergic agonist for Pompe disease, intravenous tramadol (IV tramadol), a Schedule IV opioid for the treatment of post-operative acute pain, and BAER-101 for the treatment of epilepsy and panic disorders. The company operates in one reportable segment, the development and commercialization of therapies for the treatment of neurologic diseases.
33GF Score
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