IART WACC - Weighted Average Cost of Capital

The WACC of Integra Lifesciences Holdings Corp (IART) is 7.5%.

The Cost of Equity of Integra Lifesciences Holdings Corp (IART) is 13.50%.

The Cost of Debt of Integra Lifesciences Holdings Corp (IART) is 5.50%.

	Range	Selected
Cost of equity	10.70% - 16.30%	13.50%
Tax rate	19.30% - 30.00%	24.65%
Cost of debt	4.00% - 7.00%	5.50%
WACC	6.0% - 9.1%	7.5%

WACC

IART WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	4.6%	5.6%
Adjusted beta	1.48	2.04

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.70%	16.30%

Tax rate	19.30%	30.00%
Debt/Equity ratio	1.72	1.72
Cost of debt	4.00%	7.00%

After-tax WACC	6.0%	9.1%


Selected WACC	7.5%

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 (13.50%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.48) + 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.