The WACC of Icoreconnect Inc (ICCT) is 5.1%.
Range | Selected | |
Cost of equity | 5.4% - 7.0% | 6.2% |
Tax rate | 26.2% - 27.0% | 26.6% |
Cost of debt | 4.5% - 7.1% | 5.8% |
WACC | 4.2% - 6.0% | 5.1% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.34 | 0.38 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 5.4% | 7.0% |
Tax rate | 26.2% | 27.0% |
Debt/Equity ratio | 1.41 | 1.41 |
Cost of debt | 4.5% | 7.1% |
After-tax WACC | 4.2% | 6.0% |
Selected WACC | 5.1% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
ICCT | Icoreconnect Inc | 1.41 | -55.24 | -27.21 |
APYI | Aspyra Inc | 0.53 | 0.2 | 0.14 |
CMPD | CompuMed Inc | 0.04 | 0.36 | 0.35 |
EKG.V | CardioComm Solutions Inc | 0.25 | -0.03 | -0.02 |
MITI | Mitesco Inc | 0.44 | -1.21 | -0.92 |
MLKNA | MedLink International Inc | 0.45 | 1.22 | 0.92 |
NH | NantHealth Inc | 29.54 | 0.4 | 0.02 |
NHEL | Natural Health Farm Holdings Inc | 0.09 | 1.27 | 1.19 |
NMXS | Net Medical Xpress Solutions Inc | 0.51 | 0.21 | 0.16 |
SPOM | SPO Global Inc | 13.51 | 0.8 | 0.07 |
WORX | Scworx Corp | 0.04 | 2.03 | 1.97 |
Low | High | |
Unlevered beta | 0.07 | 0.16 |
Relevered beta | 0.01 | 0.07 |
Adjusted relevered beta | 0.34 | 0.38 |
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 ICCT:
cost_of_equity (6.20%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.34) + 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.