ICFI
ICF International Inc
Price:  
84.71 
USD
Volume:  
151,840.00
United States | Professional Services
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ICFI WACC - Weighted Average Cost of Capital

The WACC of ICF International Inc (ICFI) is 7.9%.

The Cost of Equity of ICF International Inc (ICFI) is 8.90%.
The Cost of Debt of ICF International Inc (ICFI) is 5.10%.

Range Selected
Cost of equity 7.70% - 10.10% 8.90%
Tax rate 22.20% - 24.60% 23.40%
Cost of debt 4.90% - 5.30% 5.10%
WACC 6.9% - 8.8% 7.9%
WACC

ICFI WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.84 0.94
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.70% 10.10%
Tax rate 22.20% 24.60%
Debt/Equity ratio 0.27 0.27
Cost of debt 4.90% 5.30%
After-tax WACC 6.9% 8.8%
Selected WACC 7.9%

ICFI'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 ICFI:

cost_of_equity (8.90%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.84) + 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.