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Cullinan Oncology WACC %

:7.68 (As of Today)
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As of today (2021-10-24), Cullinan Oncology's weighted average cost of capital is 7.68%. Cullinan Oncology's ROIC % is 0.00% (calculated using TTM income statement data). Cullinan Oncology earns returns that do not match up to its cost of capital. It will destroy value as it grows.

*Note: The beta of this company cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.


Cullinan Oncology WACC % Historical Data

The historical data trend for Cullinan Oncology'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.

Cullinan Oncology Annual Data
Trend Dec18 Dec19 Dec20
WACC %
- - -

Cullinan Oncology Semi-Annual Data
Dec18 Dec19 Dec20
WACC % - - -

Competitive Comparison

For the Biotechnology subindustry, Cullinan Oncology'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.

   

Cullinan Oncology WACC % Distribution

For the Biotechnology industry and Healthcare sector, Cullinan Oncology's WACC % distribution charts can be found below:

* The bar in red indicates where Cullinan Oncology's WACC % falls into.



Cullinan Oncology 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)


Cullinan Oncology  (NAS:CGEM) 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, Cullinan Oncology's weighted average cost of capital is 7.68%. Cullinan Oncology's ROIC % is 0.00% (calculated using TTM income statement data). Cullinan Oncology earns returns that do not match up to its cost of capital. It will destroy value as it grows.

*Note: The beta of this company cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.


Be Aware

1. GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding latest two-year average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together.

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 last fiscal year end Interest Expense divided by the latest two-year average debt to get the simplified cost of debt.


Related Terms

Cullinan Oncology Business Description

Cullinan Oncology logo
Industry
Healthcare » Biotechnology NAICS : 541713 SIC : 2834
Comparable Companies
Traded in Other Exchanges
N/A
Address
One Main Street, Suite 520, Cambridge, MA, USA, 02142
Cullinan Oncology Inc is a biopharmaceutical company. It is focused on developing a diversified pipeline of targeted oncology and immuno-oncology therapies with transformative potential for cancer patients.

Cullinan Oncology Headlines

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