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The following section summarizes insights on Biogen Inc's WACC:
We've identified the following companies as similar to Biogen Inc because they operate in a related industry or sector. We also considered size, growth, and various financial metrics to narrow down the list to the ones listed below.
To view the full list of supported financial metrics please see Complete Metrics Listing.
Metrics similar to WACC in the valuation category include:
Our estimate of the weighted average cost of capital for a company.
The Weighted Average Cost of Capital or WACC is a discount rate used to find the present value a company’s future cash flows that is applied in various Discounted Cash Flow (DCF) analyses. Broadly speaking, a company’s assets are financed by either debt or equity. The WACC is the average of these sources of financing, each of which is weighted by its respective use.
WACC can also be described as the weighted average rate of return a firm theoretically pays to its debt and equity providers to compensate for the risk they undertake by investing their capital.
We estimate WACC using the Capital Asset Pricing Model (CAPM).
How to calculate the WACC:
Total Capital = Debt + Equity
WACC =
(Equity / Total Capital) * Cost of Equity
+ (Debt / Total Capital) * Cost of Debt * (1 - Tax Rate)
The chart above depicts the distribution of WACC for companies operating in the Healthcare Sector in the Developed economic region. Over 2,525 companies were considered in this analysis, and 2,456 had meaningful values. The average WACC of companies in the Sector is 10.7% with a standard deviation of 2.5%. Please note that Sector and Industry values may differ from other sources, as no adjustments have been made.
Biogen Inc's WACC of 9.0% ranks in the 25.0% percentile for the Sector. The following table provides additional summary stats:
Economic Risk Region | Developed |
Total Constituents | 2,530 |
Included Constituents | 2,456 |
Min | 7.8% |
Max | 22.5% |
Median | 10.0% |
Mean | 10.7% |
Standard Deviation | 2.5% |
You can find companies with similar WACC using this stock screener.