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KBLB (Kraig Biocraft Laboratories) WACC % :14.42% (As of Jul. 19, 2025)


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What is Kraig Biocraft Laboratories WACC %?

As of today (2025-07-19), Kraig Biocraft Laboratories's weighted average cost of capital is 14.42%%. Kraig Biocraft Laboratories's ROIC % is -131.60% (calculated using TTM income statement data). Kraig Biocraft Laboratories 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.


Kraig Biocraft Laboratories WACC % Historical Data

The historical data trend for Kraig Biocraft Laboratories'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.

* Premium members only.

Kraig Biocraft Laboratories WACC % Chart

Kraig Biocraft Laboratories Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
WACC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -0.15 -1.07 5.65 10.05 16.00

Kraig Biocraft Laboratories Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
WACC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 14.34 15.43 15.66 16.00 15.58

Competitive Comparison of Kraig Biocraft Laboratories's WACC %

For the Specialty Chemicals subindustry, Kraig Biocraft Laboratories'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.


Kraig Biocraft Laboratories's WACC % Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Kraig Biocraft Laboratories's WACC % distribution charts can be found below:

* The bar in red indicates where Kraig Biocraft Laboratories's WACC % falls into.


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Kraig Biocraft Laboratories WACC % Calculation

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, Kraig Biocraft Laboratories's market capitalization (E) is $85.541 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. 2025, Kraig Biocraft Laboratories's latest one-year quarterly average Book Value of Debt (D) is $1.7182 Mil.
a) weight of equity = E / (E + D) = 85.541 / (85.541 + 1.7182) = 0.9803
b) weight of debt = D / (E + D) = 1.7182 / (85.541 + 1.7182) = 0.0197

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 4.42%. 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. Kraig Biocraft Laboratories's beta is 1.61.
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 = 4.42% + 1.61 * 6% = 14.08%

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. 2025, Kraig Biocraft Laboratories's interest expense (positive number) was $0.54 Mil. Its total Book Value of Debt (D) is $1.7182 Mil.
Cost of Debt = 0.54 / 1.7182 = 31.4282%.

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 / -3.491 = 0%.

Kraig Biocraft Laboratories'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)
=0.9803*14.08%+0.0197*31.4282%*(1 - 0%)
=14.42%

* 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.


Kraig Biocraft Laboratories  (OTCPK:KBLB) 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, Kraig Biocraft Laboratories's weighted average cost of capital is 14.42%%. Kraig Biocraft Laboratories's ROIC % is -131.60% (calculated using TTM income statement data). Kraig Biocraft Laboratories 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

Kraig Biocraft Laboratories Business Description

Traded in Other Exchanges
N/A
Address
2723 South State Street, Suite 150, Ann Arbor, MI, USA, 48104
Kraig Biocraft Laboratories Inc is engaged in the development of high-strength fiber using recombinant DNA technology mainly for commercial applications. It uses genetic engineering technologies to develop fibers with greater strength, resiliency, and flexibility for use in its target markets, namely the textile, specialty fiber, and technical textile industries. Its products include Monster Silk, which incorporates the natural elasticity of spider silk to make a silk fiber that is more flexible than conventional silk fibers and textiles; and Dragon Silk, which combines the elasticity of Monster Silk with additional high strength elements of native spider silk; Spydasilk; and Spydra.
Executives
Jonathan Richard Rice officer: COO 2723 S STATE STREET, SUITE 150, ANN ARBOR MI 48104
Kimberly Kraig Thompson director, 10 percent owner, officer: CEO, CFO 2723 S STATE STREET, SUITE 150, ANN ARBOR MI 48401