ICFI
ICF International Inc
Price:  
81.06 
USD
Volume:  
345,456.00
United States | Professional Services
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ICFI WACC - Weighted Average Cost of Capital

The WACC of ICF International Inc (ICFI) is 7.4%.

The Cost of Equity of ICF International Inc (ICFI) is 8.40%.
The Cost of Debt of ICF International Inc (ICFI) is 5.20%.

Range Selected
Cost of equity 7.00% - 9.80% 8.40%
Tax rate 22.20% - 24.60% 23.40%
Cost of debt 5.10% - 5.30% 5.20%
WACC 6.3% - 8.5% 7.4%
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 0.69 0.88
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.00% 9.80%
Tax rate 22.20% 24.60%
Debt/Equity ratio 0.29 0.29
Cost of debt 5.10% 5.30%
After-tax WACC 6.3% 8.5%
Selected WACC 7.4%

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 (8.40%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.69) + 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.