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Mustang BioMBIO +1.49%30 WACC % is 19.41% as of Jul. 14, 2026, which is 53% above its 10-year median of 12.72. GuruFocus rates MBIO with a GF Score™ of 30/100. The stock has 2 warning signs investors should review. Among 1,421 Biotechnology companies, Mustang Bio ranks worse than 91.41% on this metric.
As of today (2026-07-14), Mustang Bio's weighted average cost of capital is 19.41%%. Mustang Bio's ROIC % is -3186.02% (calculated using TTM income statement data).
Mustang Bio 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.
Mustang Bio (NAS:MBIO) 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, Mustang Bio's weighted average cost of capital is 19.41%%. Mustang Bio's ROIC % is -3186.02% (calculated using TTM income statement data).
Mustang Bio 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
Mustang Bio WACC % Historical Data
* Premium members only.
The historical data trend for Mustang Bio'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, Mustang Bio'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.
Mustang Bio WACC % vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Mustang Bio's WACC % distribution charts can be found below:
* The bar in red indicates where Mustang Bio'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, Mustang Bio's market capitalization (E) is $5.105 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, Mustang Bio's latest one-year quarterly average Book Value of Debt (D) is $0 Mil.
a) weight of equity = E / (E + D) = 5.105 / (5.105 + 0) = 1
b) weight of debt = D / (E + D) = 0 / (5.105 + 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 4.575%. 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. Mustang Bio's beta is 2.4721.
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 = 4.575% + 2.4721 * 6% = 19.4076%
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, Mustang Bio'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 / -2.723 = 0%.
Mustang Bio'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
*
19.4076%
+
0
*
%
*
(1 - 0%)
=
19.41%
* 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.
Mustang Bio (MBIO) has a WACC % of 19.41% as of Jul. 14, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Mustang Bio and its competitors. This is 53% above median its historical median of 12.72. Over the past decade, Mustang Bio's WACC % has ranged from 8.08 to 27.01. According to the industry distribution chart, Mustang Bio ranks #1299 out of 1421 companies in the Biotechnology industry, placing it in the top 91.4%.
Is Mustang Bio's WACC % too high?
Mustang Bio's current WACC % of 19.41% is 53% above median its 10-year median of 12.72. Over the past 10 years, this metric has ranged from a low of 8.08 to a high of 27.01. The Biotechnology industry median WACC % is 10.01. Mustang Bio's value of 19.41% is 93.9% above this industry median. Based on the distribution chart, Mustang Bio ranks #1299 out of 1421 companies in the Biotechnology industry, which is in the bottom quartile relative to peers. Overall, Mustang Bio has a GF Score™ of 30/100, reflecting its overall financial health beyond just this single metric.
How does Mustang Bio's WACC % compare to ELAB and DRMA?
According to the Biotechnology industry distribution chart, Mustang Bio ranks #1299 out of 1421 companies for WACC %. This places Mustang Bio in the lower half of its industry. The industry median WACC % is 10.01. Mustang Bio's value of 19.41% is 93.9% above this benchmark. Historically, Mustang Bio's own WACC % has ranged from 8.08 to 27.01 over the past decade. While the company's 10-year median is 12.72 vs. the industry median of 10.01, Mustang Bio 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 10.01, based on 1,421 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. Mustang Bio's current WACC % of 19.41% is 93.9% 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 Mustang Bio and its competitors. For the Biotechnology industry, the median WACC % is 10.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mustang Bio's current WACC % is 19.41%, which is 53% above median its own 10-year median of 12.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mustang Bio stock overvalued right now?
Mustang Bio (MBIO) has a current WACC % of 19.41%. The current WACC % is 19.41%, which is 53% above median its 10-year median of 12.72 and 93.9% above the Biotechnology industry median of 10.01. Mustang Bio's overall GF Score™ is 30/100 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 Mustang Bio (MBIO), the current WACC % is 19.41% as of Jul. 14, 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.
Mustang Bio Inc is a clinical-stage biopharmaceutical company focused on translating today's medical breakthroughs into potential cures for difficult-to-treat cancers. It acquires rights to these technologies by licensing or otherwise acquiring an ownership interest in the technologies, funding their research and development, and eventually either out-licensing or bringing the technologies to market. Its pipeline is currently focused on the core areas of gene therapies for rare genetic disorders, chimeric antigen receptor (CAR) engineered T cell (CAR T) therapies for hematologic malignancies, and CAR T therapies for solid tumors.
30GF Score
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