Question 1

What is Heron Therapeutics, Inc.'s WACC?

Accepted Answer

Heron Therapeutics, Inc. (HRTX) has a Weighted Average Cost of Capital (WACC) of 7.31%. This is calculated using a Cost of Equity of 10.08% (via CAPM with a beta of 1.55) and a pre-tax Cost of Debt of 4.03%, with an equity weight of 54.13% in the capital structure.

Question 2

Is Heron Therapeutics, Inc.'s WACC high or low?

Accepted Answer

Heron Therapeutics, Inc.'s WACC of 7.31% 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 Heron Therapeutics, Inc.'s WACC calculated?

Accepted Answer

Heron Therapeutics, Inc.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 10.08% is derived from the CAPM model using a beta of 1.55. The pre-tax Cost of Debt (Rd) is 4.03%. The capital structure is 54.13% equity and 45.87% debt.

Heron Therapeutics, Inc. (HRTX) — WACC 分析

WACC 构成

解读

Heron Therapeutics, Inc.（HRTX）WACC：7.31%

WACC计算器

Heron Therapeutics, Inc.（HRTX） WACC 解读

HRTX 公司分析

HRTX DCF 估值

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