IDND WACC - Weighted Average Cost of Capital

The WACC of International Dispensing Corp (IDND) is 6.4%.

The Cost of Equity of International Dispensing Corp (IDND) is 13.50%.

The Cost of Debt of International Dispensing Corp (IDND) is 4.50%.

	Range	Selected
Cost of equity	10.20% - 16.80%	13.50%
Tax rate	26.20% - 27.00%	26.60%
Cost of debt	4.50% - 4.50%	4.50%
WACC	5.4% - 7.4%	6.4%

WACC

IDND WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	4.6%	5.6%
Adjusted beta	1.38	2.14

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.20%	16.80%

Tax rate	26.20%	27.00%
Debt/Equity ratio	2.29	2.29
Cost of debt	4.50%	4.50%

After-tax WACC	5.4%	7.4%


Selected WACC	6.4%

IDND'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 IDND:

cost_of_equity (13.50%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.38) + 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.