IART
Integra Lifesciences Holdings Corp
Price:  
14.86 
USD
Volume:  
1,440,549.00
United States | Health Care Equipment & Supplies
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IART WACC - Weighted Average Cost of Capital

The WACC of Integra Lifesciences Holdings Corp (IART) is 7.2%.

The Cost of Equity of Integra Lifesciences Holdings Corp (IART) is 11.75%.
The Cost of Debt of Integra Lifesciences Holdings Corp (IART) is 5.75%.

Range Selected
Cost of equity 10.10% - 13.40% 11.75%
Tax rate 19.30% - 30.00% 24.65%
Cost of debt 4.00% - 7.50% 5.75%
WACC 5.9% - 8.4% 7.2%
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 1.36 1.52
Additional risk adjustments 0.0% 0.5%
Cost of equity 10.10% 13.40%
Tax rate 19.30% 30.00%
Debt/Equity ratio 1.56 1.56
Cost of debt 4.00% 7.50%
After-tax WACC 5.9% 8.4%
Selected WACC 7.2%

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 (11.75%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.36) + 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.