IART WACC - Weighted Average Cost of Capital
The WACC of Integra Lifesciences Holdings Corp (IART) is 7.5%.
| Range | Selected | |
| Cost of equity | 11.0% - 17.1% | 14.05% |
| Tax rate | 19.3% - 30.0% | 24.65% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 5.9% - 9.1% | 7.5% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 1.55 | 2.19 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 11.0% | 17.1% |
| Tax rate | 19.3% | 30.0% |
| Debt/Equity ratio | 1.89 | 1.89 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 5.9% | 9.1% |
| Selected WACC | 7.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| IART | Integra Lifesciences Holdings Corp | 1.89 | 1.51 | 0.61 |
| CMD | Cantel Medical Corp | 0.31 | 1.55 | 1.25 |
| CNMD | Conmed Corp | 0.56 | 0.46 | 0.32 |
| GKOS | Glaukos Corp | 0.01 | 1.17 | 1.16 |
| GMED | Globus Medical Inc | 0.06 | 0.79 | 0.75 |
| HSKA | Heska Corp | 0.07 | 1.57 | 1.48 |
| LIVN | LivaNova PLC | 0.25 | 0.65 | 0.54 |
| NUVA | NuVasive Inc | 0.43 | 0.94 | 0.71 |
| OM | Outset Medical Inc | 0.58 | 1.68 | 1.15 |
| TNDM | Tandem Diabetes Care Inc | 0.28 | 1.33 | 1.09 |
| Low | High | |
| Unlevered beta | 0.73 | 1.11 |
| Relevered beta | 1.82 | 2.78 |
| Adjusted relevered beta | 1.55 | 2.19 |
IART's CAPM model and how its cost of Equity is calculated
The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.
This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.
Here’s how we figure out the cost of equity for IART:
cost_of_equity (14.05%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.55) + risk_adjustments (0.25%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.