Baudax Bio Inc (BXRX) WACC Analysis

As of May 23, 2025, Baudax Bio Inc (BXRX) carries a Weighted Average Cost of Capital (WACC) of 4.8%. WACC reflects the blended rate Baudax Bio Inc must pay to both equity and debt holders.

Within that, the cost of equity is 10.5%, the cost of debt is 5.0%, and the effective tax rate is 26.2%.

Breakdown of WACC Components

• Long-term bond rate: 3.9% – 4.4%
• Equity market risk premium: 4.6% – 5.6%
• Adjusted beta: 1.43 – 2.12
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 7.49

What It Means for Investors

With a selected WACC of 4.8%, Baudax Bio Inc must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.