IDL.V WACC - Weighted Average Cost of Capital
The WACC of Imaging Dynamics Co Ltd (IDL.V) is 3.9%.
| Range | Selected | |
| Cost of equity | 5.1% - 8.1% | 6.6% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 3.8% - 3.9% | 3.9% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.24 | 0.54 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.1% | 8.1% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 15.27 | 15.27 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 3.8% | 3.9% |
| Selected WACC | 3.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| IDL.V | Imaging Dynamics Co Ltd | 15.27 | 0.6 | 0.05 |
| ABMT | Advanced Biomedical Technologies Inc | 139.64 | 2 | 0.02 |
| BINP | Bionoid Pharma Inc | 0.02 | -0.53 | -0.52 |
| BLFE | Biolife Sciences Inc | 183.62 | 0 | 0 |
| IME.CN | Imagin Medical Inc | 48.47 | -2.03 | -0.06 |
| MZEIQ | Medizone International Inc | 0.79 | -0.55 | -0.35 |
| POSC | Positron Corp | 0.02 | 0.15 | 0.15 |
| RMSL | REMSleep Holdings Inc | 0 | 0.88 | 0.88 |
| Low | High | |
| Unlevered beta | -0.01 | 0.03 |
| Relevered beta | -0.13 | 0.31 |
| Adjusted relevered beta | 0.24 | 0.54 |
IDL.V'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 IDL.V:
cost_of_equity (6.60%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.24) + 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.