IART
Integra Lifesciences Holdings Corp
Price:  
12.27 
USD
Volume:  
1,150,193.00
United States | Health Care Equipment & Supplies
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

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 14.05%.
The Cost of Debt of Integra Lifesciences Holdings Corp (IART) is 5.50%.

Range Selected
Cost of equity 11.00% - 17.10% 14.05%
Tax rate 19.30% - 30.00% 24.65%
Cost of debt 4.00% - 7.00% 5.50%
WACC 5.9% - 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 1.55 2.19
Additional risk adjustments 0.0% 0.5%
Cost of equity 11.00% 17.10%
Tax rate 19.30% 30.00%
Debt/Equity ratio 1.89 1.89
Cost of debt 4.00% 7.00%
After-tax WACC 5.9% 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 (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.