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Editas Medicine, Inc. Common Stock (EDIT) — WACC Analysis

WACC Breakdown

Editas Medicine, Inc. Common Stock (EDIT) has a weighted average cost of capital (WACC) of 11.5%. The cost of equity is 12.5%, derived from a beta of 2.08 and a risk-free rate of 5.2%. The after-tax cost of debt is 5.2%. The capital structure is 87.1% equity and 12.9% debt.

Interpretation

A WACC of 11.5% is moderate, reflecting the market's balanced risk assessment of Editas Medicine, Inc. Common Stock.

Investors can compare EDIT's WACC of 11.5% against industry peers to gauge its relative financing costs. A beta of 2.08 reflects the stock's volatility relative to the broader market.

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VALUATION

EDIT WACC: 11.52% for Editas Medicine, Inc. Common Stock

Current inputs imply a 12.47% cost of equity and a 5.19% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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[02]
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

Editas Medicine, Inc. Common Stock Common Stock (EDIT) WACC Results
Weighted Average Cost of Capital
11.52%
Cost of Equity
12.47%
Risk-Free Rate5.19%
Beta2.08
Market Risk Premium4.23%
Cost of Debt
5.19%
Pre-Tax Cost of Debt5.19%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 87.05%($374.74M)
Debt: 12.95%($55.74M)
Equity Component
10.85%
87.05% × 12.47%
Debt Component
0.67%
12.95% × 5.19%

Editas Medicine, Inc. Common Stock (EDIT) WACC in context

Editas Medicine, Inc. Common Stock (EDIT) currently screens with an estimated WACC of 11.52%. That blends a 12.47% cost of equity, a 5.19% pre-tax cost of debt, and a 87.05% equity weight into the discount rate you would typically use in a DCF model.

falls into a common range for established public companies and is a practical DCF starting point.

What EDIT WACC implies

A 11.52% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates EDIT

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 2.08 and equity accounts for 87.05% 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.