Black Diamond TherapeuticsBDTX +0.59%37 WACC % is 25.51% as of Jun. 27, 2026, which is 71% above its 10-year median of 14.89. GuruFocus rates BDTX with a GF Score™ of 37/100. The stock has 2 warning signs investors should review. Among 1,428 Biotechnology companies, Black Diamond Therapeutics ranks worse than 97.2% on this metric.
As of today (2026-06-27), Black Diamond Therapeutics's weighted average cost of capital is 25.51%%. Black Diamond Therapeutics's ROIC % is -234.00% (calculated using TTM income statement data).
Black Diamond 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.
Black Diamond Therapeutics (NAS:BDTX) WACC % Explanation
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, Black Diamond Therapeutics's weighted average cost of capital is 25.51%%. Black Diamond Therapeutics's ROIC % is -234.00% (calculated using TTM income statement data).
Black Diamond 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.
* 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, Black Diamond 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.
Black Diamond Therapeutics WACC % vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Black Diamond Therapeutics's WACC % distribution charts can be found below:
* The bar in red indicates where Black Diamond 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, Black Diamond Therapeutics's market capitalization (E) is $97.986 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, Black Diamond Therapeutics's latest one-year quarterly average Book Value of Debt (D) is $19.7344 Mil.
a) weight of equity = E / (E + D) = 97.986 / (97.986 + 19.7344) = 0.8324
b) weight of debt = D / (E + D) = 19.7344 / (97.986 + 19.7344) = 0.1676
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. Black Diamond Therapeutics's beta is 4.3775.
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% + 4.3775 * 6% = 30.641%
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, Black Diamond Therapeutics's interest expense (positive number) was $-0 Mil. Its total Book Value of Debt (D) is $19.7344 Mil.
Cost of Debt = -0 / 19.7344 = 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 / -43.211 = 0%.
* 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.
Black Diamond Therapeutics (BDTX) has a WACC % of 25.51% as of Jun. 27, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Black Diamond Therapeutics and its competitors. This is 71% above median its historical median of 14.89. Over the past decade, Black Diamond Therapeutics' WACC % has ranged from 6.85 to 34.09. According to the industry distribution chart, Black Diamond Therapeutics ranks #1388 out of 1428 companies in the Biotechnology industry, placing it in the top 97.2%.
Is Black Diamond Therapeutics' WACC % too high?
Black Diamond Therapeutics' current WACC % of 25.51% is 71% above median its 10-year median of 14.89. Over the past 10 years, this metric has ranged from a low of 6.85 to a high of 34.09. The Biotechnology industry median WACC % is 10.03. Black Diamond Therapeutics' value of 25.51% is 154.5% above this industry median. Based on the distribution chart, Black Diamond Therapeutics ranks #1388 out of 1428 companies in the Biotechnology industry, which is in the bottom quartile relative to peers. Overall, Black Diamond Therapeutics has a GF Score™ of 37/100, reflecting its overall financial health beyond just this single metric.
How does Black Diamond Therapeutics' WACC % compare to GUTS and ALPS?
According to the Biotechnology industry distribution chart, Black Diamond Therapeutics ranks #1388 out of 1428 companies for WACC %. This places Black Diamond Therapeutics in the lower half of its industry. The industry median WACC % is 10.03. Black Diamond Therapeutics' value of 25.51% is 154.5% above this benchmark. Historically, Black Diamond Therapeutics' own WACC % has ranged from 6.85 to 34.09 over the past decade. While the company's 10-year median is 14.89 vs. the industry median of 10.03, Black Diamond 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 10.03, based on 1,428 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. Black Diamond Therapeutics's current WACC % of 25.51% is 154.5% 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 Black Diamond Therapeutics and its competitors. For the Biotechnology industry, the median WACC % is 10.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Black Diamond Therapeutics's current WACC % is 25.51%, which is 71% above median its own 10-year median of 14.89. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Black Diamond Therapeutics stock overvalued right now?
Black Diamond Therapeutics (BDTX) has a current WACC % of 25.51%. The current WACC % is 25.51%, which is 71% above median its 10-year median of 14.89 and 154.5% above the Biotechnology industry median of 10.03. Black Diamond Therapeutics' overall GF Score™ is 37/100 with 2 warning signs 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 Black Diamond Therapeutics (BDTX), the current WACC % is 25.51% as of Jun. 27, 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.
Black Diamond Therapeutics Inc is a clinical-stage oncology company developing MasterKey therapies that target families of oncogenic mutations in patients with cancer. The foundation of companies has been built upon a deep understanding of cancer genetics, onco-protein structure and function, and medicinal chemistry. Its clinical-stage program, silevertinib (formerly BDTX-1535), a brain-penetrant, fourth-generation epidermal growth factor receptor (EGFR) MasterKey inhibitor, is currently being studied in a Phase 2 clinical trial in patients with epidermal growth factor receptor mutant (EGFRm) non-small cell lung cancer (NSCLC). The Company manages its operations as a single operating segment and single reportable segment.
37GF Score
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