Intellia TherapeuticsNTLA +4.05%70 WACC % is 18.24% as of Jun. 28, 2026, which is 37% above its 10-year median of 13.36. GuruFocus rates NTLA with a GF Score™ of 70/100 and a GF Value™ of $20.65 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,428 Biotechnology companies, Intellia Therapeutics ranks worse than 89.5% on this metric.
As of today (2026-06-28), Intellia Therapeutics's weighted average cost of capital is 18.24%%. Intellia Therapeutics's ROIC % is -101.62% (calculated using TTM income statement data).
Intellia 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.
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, Intellia Therapeutics's weighted average cost of capital is 18.24%%. Intellia Therapeutics's ROIC % is -101.62% (calculated using TTM income statement data).
Intellia 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, Intellia 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.
Intellia Therapeutics WACC % vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Intellia Therapeutics's WACC % distribution charts can be found below:
* The bar in red indicates where Intellia 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, Intellia Therapeutics's market capitalization (E) is $2327.773 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, Intellia Therapeutics's latest one-year quarterly average Book Value of Debt (D) is $98.7258 Mil.
a) weight of equity = E / (E + D) = 2327.773 / (2327.773 + 98.7258) = 0.9593
b) weight of debt = D / (E + D) = 98.7258 / (2327.773 + 98.7258) = 0.0407
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. Intellia Therapeutics's beta is 2.4404.
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% + 2.4404 * 6% = 19.0184%
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, Intellia Therapeutics's interest expense (positive number) was $-0 Mil. Its total Book Value of Debt (D) is $98.7258 Mil.
Cost of Debt = -0 / 98.7258 = 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 / -394.596 = 0%.
Intellia Therapeutics'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)
=
0.9593
*
19.0184%
+
0.0407
*
0%
*
(1 - 0%)
=
18.24%
* 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.
Intellia Therapeutics (NTLA) has a WACC % of 18.24% as of Jun. 28, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Intellia Therapeutics and its competitors. This is 37% above median its historical median of 13.36. Over the past decade, Intellia Therapeutics' WACC % has ranged from 8.40 to 20.39. According to the industry distribution chart, Intellia Therapeutics ranks #1278 out of 1428 companies in the Biotechnology industry, placing it in the top 89.5%.
Is Intellia Therapeutics' WACC % too high?
Intellia Therapeutics' current WACC % of 18.24% is 37% above median its 10-year median of 13.36. Over the past 10 years, this metric has ranged from a low of 8.40 to a high of 20.39. The Biotechnology industry median WACC % is 10.03. Intellia Therapeutics' value of 18.24% is 81.9% above this industry median. Based on the distribution chart, Intellia Therapeutics ranks #1278 out of 1428 companies in the Biotechnology industry, which is in the bottom quartile relative to peers. Overall, Intellia Therapeutics has a GF Score™ of 70/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Intellia Therapeutics' WACC % compare to AUPH and OCUL?
According to the Biotechnology industry distribution chart, Intellia Therapeutics ranks #1278 out of 1428 companies for WACC %. This places Intellia Therapeutics in the lower half of its industry. The industry median WACC % is 10.03. Intellia Therapeutics' value of 18.24% is 81.9% above this benchmark. Historically, Intellia Therapeutics' own WACC % has ranged from 8.40 to 20.39 over the past decade. While the company's 10-year median is 13.36 vs. the industry median of 10.03, Intellia 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. Intellia Therapeutics's current WACC % of 18.24% is 81.9% 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 Intellia 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. Intellia Therapeutics's current WACC % is 18.24%, which is 37% above median its own 10-year median of 13.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Intellia Therapeutics stock overvalued right now?
Based on GuruFocus' analysis, Intellia Therapeutics (NTLA) is currently considered Modestly Undervalued. The stock's GF Value™ is $20.65, compared to a current price of $16.66 — trading 19.3% below its estimated fair value. The current WACC % is 18.24%, which is 37% above median its 10-year median of 13.36 and 81.9% above the Biotechnology industry median of 10.03. Intellia Therapeutics' overall GF Score™ is 70/100 with 3 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 Intellia Therapeutics (NTLA), the current WACC % is 18.24% as of Jun. 28, 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.
Is Intellia Therapeutics (NTLA) Overvalued in 2026?
Based on GuruFocus' analysis, Intellia Therapeutics stock appears to be undervalued.
The current stock price of $16.66 is trading 19.3% below its estimated GF Value™ of $20.65.
GuruFocus considers Intellia Therapeutics to be Modestly Undervalued.
Key valuation signals for NTLA:
WACC %: 18.24% (37% above median its 10-year median of 13.36)
GF Value™: $20.65 vs. price of $16.66 (19.3% below fair value)
Industry Position: 81.9% above the Biotechnology median (#1278 of 1428)
No single metric tells the full story. See the NTLA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Intellia Therapeutics is a gene-editing company focused on the development of Crispr/Cas9-based therapeutics. Crispr/Cas9 stands for Clustered Regularly Interspaced Short Palindromic Repeats (Crispr)/Crispr-associated protein 9 (Cas9), which is a revolutionary technology for precisely altering specific sequences of genomic DNA. Intellia is focused on using this technology to treat genetically defined diseases. It's evaluating multiple gene editing approaches using in vivo and ex vivo therapies to address diseases with high unmet medical needs, including ATTR amyloidosis, hereditary angioedema, sickle cell disease, and immuno-oncology. Intellia has formed collaborations with several companies to advance its pipeline, including narrow-moat Regeneron and wide-moat Novartis.
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