Liminal BioSciences Inc (LMNL) WACC Analysis

As of June 3, 2025, Liminal BioSciences Inc (LMNL) carries a Weighted Average Cost of Capital (WACC) of 8.0%. WACC reflects the blended rate Liminal BioSciences Inc must pay to both equity and debt holders.

Within that, the cost of equity is 7.0%, the cost of debt is 5.5%, and the effective tax rate is 0.2%.

Breakdown of WACC Components

• Long-term bond rate: 3.9% – 4.4%
• Equity market risk premium: 4.6% – 5.6%
• Adjusted beta: 0.68 – 0.76
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.04

What It Means for Investors

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