As of today (2023-03-22), Awakn Life Sciences's weighted average cost of capital is %. Awakn Life Sciences's ROIC % is -223.72% (calculated using TTM income statement data).
Awakn Life Sciences generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
*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.
Awakn Life Sciences WACC % Historical Data
The historical data trend for Awakn Life Sciences'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.
Awakn Life Sciences Annual Data
Trend
Jan22
WACC %
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Awakn Life Sciences Quarterly Data
Apr21
Jul21
Oct21
Jan22
Apr22
Jul22
Oct22
WACC %
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Competitive Comparison
For the Biotechnology subindustry, Awakn Life Sciences'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.
Awakn Life Sciences WACC % Distribution
For the Biotechnology industry and Healthcare sector, Awakn Life Sciences's WACC % distribution charts can be found below:
* The bar in red indicates where Awakn Life Sciences's WACC % falls in comparison to its industry or sector. The grey bar indicates the WACC %'s extreme value range as defined by GuruFocus.
Awakn Life Sciences 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)
Awakn Life Sciences (NEOE:AWKN) 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, Awakn Life Sciences's weighted average cost of capital is %. Awakn Life Sciences's ROIC % is -223.72% (calculated using TTM income statement data).
Awakn Life Sciences generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
*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.
Awakn Life Sciences Corp is a Canadian biotechnology company with clinical operations researching, developing, and delivering psychedelic medicine to treat addiction. It is engaged in researching and developing psychedelic drugs, therapies, and enabling technologies to treat addiction and delivering psychedelic treatments for addiction in clinics in the UK and EU.
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