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Collegium Pharmaceutical, Inc. Common Stock (COLL) — WACC Analysis

WACC Breakdown

Collegium Pharmaceutical, Inc. Common Stock (COLL) has a weighted average cost of capital (WACC) of 12.1%. The cost of equity is 8.1%, derived from a beta of 0.57 and a risk-free rate of 5.0%. The after-tax cost of debt is 25.3%. The capital structure is 76.6% equity and 23.4% debt.

Interpretation

A WACC of 12.1% indicates that the market perceives Collegium Pharmaceutical, Inc. Common Stock as higher-risk, requiring a greater return to compensate investors.

Investors can compare COLL's WACC of 12.1% against industry peers to gauge its relative financing costs. A beta of 0.57 reflects the stock's volatility relative to the broader market.

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VALUATION

COLL WACC: 12.10% for Collegium Pharmaceutical, Inc. Common Stock

Current inputs imply a 8.07% cost of equity and a 32.02% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Collegium Pharmaceutical, Inc. Common Stock Common Stock (COLL) WACC Results
Weighted Average Cost of Capital
12.10%
Cost of Equity
8.07%
Risk-Free Rate5.05%
Beta0.57
Market Risk Premium4.23%
Cost of Debt
25.30%
Pre-Tax Cost of Debt32.02%
Tax Rate21.00%
Tax Shield6.72%
Capital Structure
Equity: 76.62%($782.31M)
Debt: 23.38%($238.73M)
Equity Component
6.18%
76.62% × 8.07%
Debt Component
5.91%
23.38% × 25.30%

Collegium Pharmaceutical, Inc. Common Stock (COLL) WACC in context

Collegium Pharmaceutical, Inc. Common Stock (COLL) currently screens with an estimated WACC of 12.10%. That blends a 8.07% cost of equity, a 32.02% pre-tax cost of debt, and a 76.62% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

What COLL WACC implies

A 12.10% discount rate screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

How this page calculates COLL

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.57 and equity accounts for 76.62% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.