Question 1

What is Biogen Inc. Common Stock's WACC?

Accepted Answer

Biogen Inc. Common Stock (BIIB) has a Weighted Average Cost of Capital (WACC) of 7.52%. This is calculated using a Cost of Equity of 8.52% (via CAPM with a beta of 1.00) and a pre-tax Cost of Debt of 4.25%, with an equity weight of 80.52% in the capital structure.

Question 2

Is Biogen Inc. Common Stock's WACC high or low?

Accepted Answer

Biogen Inc. Common Stock's WACC of 7.52% is below the typical range of 8-12% for most companies, indicating relatively low cost of capital and lower risk. WACC is used as the discount rate in DCF valuations — a lower WACC results in higher present values of future cash flows.

Question 3

How is Biogen Inc. Common Stock's WACC calculated?

Accepted Answer

Biogen Inc. Common Stock's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.52% is derived from the CAPM model using a beta of 1.00. The pre-tax Cost of Debt (Rd) is 4.25%. The capital structure is 80.52% equity and 19.48% debt.

Biogen Inc. Common Stock (BIIB) — WACC 分析

WACC 构成

解读

Biogen Inc. Common Stock（BIIB）WACC：7.52%

WACC计算器

Biogen Inc. Common Stock（BIIB） WACC 解读

BIIB 公司分析

BIIB DCF 估值

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