Cutera Inc (CUTR) WACC Analysis

As of May 25, 2025, Cutera Inc (CUTR) carries a Weighted Average Cost of Capital (WACC) of 8.0%. WACC reflects the blended rate Cutera Inc must pay to both equity and debt holders.

Within that, the cost of equity is 25.4%, the cost of debt is 7.0%, and the effective tax rate is 1.6%.

Breakdown of WACC Components

• Long-term bond rate: 3.9% – 4.4%
• Equity market risk premium: 4.6% – 5.6%
• Adjusted beta: 4.69 – 142.2
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 955.87

What It Means for Investors

With a selected WACC of 8.0%, Cutera Inc must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a moderate financing cost structure.