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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 11.3%. The cost of equity is 12.0%, derived from a beta of 2.07 and a risk-free rate of 4.7%. The after-tax cost of debt is 5.2%. The capital structure is 89.7% equity and 10.3% debt.

Interpretation

A WACC of 11.3% is moderate, reflecting the market's balanced risk assessment of Editas Medicine, Inc. Common Stock.

Investors can compare EDIT's WACC of 11.3% against industry peers to gauge its relative financing costs. A beta of 2.07 reflects the stock's volatility relative to the broader market.

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VALUATION

EDIT WACC: 11.28% for Editas Medicine, Inc. Common Stock

Current inputs imply a 11.98% 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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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
11.28%
Cost of Equity
11.98%
Risk-Free Rate4.73%
Beta2.07
Market Risk Premium4.23%
Cost of Debt
5.19%
Pre-Tax Cost of Debt5.19%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 89.70%($485.31M)
Debt: 10.30%($55.74M)
Equity Component
10.74%
89.70% × 11.98%
Debt Component
0.53%
10.30% × 5.19%

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

Editas Medicine, Inc. Common Stock (EDIT) currently screens with an estimated WACC of 11.28%. That blends a 11.98% cost of equity, a 5.19% pre-tax cost of debt, and a 89.70% 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 11.28% 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 2.07 and equity accounts for 89.70% 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.