Eiger BioPharmaceuticals Inc (EIGR) WACC Analysis

As of May 22, 2025, Eiger BioPharmaceuticals Inc (EIGR) carries a Weighted Average Cost of Capital (WACC) of 9.0%. WACC reflects the blended rate Eiger BioPharmaceuticals Inc must pay to both equity and debt holders.

Within that, the cost of equity is 17.3%, the cost of debt is 7.0%, and the effective tax rate is 0.0%.

Breakdown of WACC Components

• Long-term bond rate: 3.9% – 4.4%
• Equity market risk premium: 4.6% – 5.6%
• Adjusted beta: 2.93 – 3.78
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 15.51

What It Means for Investors

With a selected WACC of 9.0%, Eiger BioPharmaceuticals Inc must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a moderate financing cost structure.