IDXG WACC - Weighted Average Cost of Capital
The WACC of Interpace Biosciences Inc (IDXG) is 18.6%.
| Range | Selected | |
| Cost of equity | 7.8% - 14.5% | 11.15% |
| Tax rate | 2.4% - 3.3% | 2.85% |
| Cost of debt | 5.1% - 40.0% | 22.55% |
| WACC | 5.8% - 31.5% | 18.6% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.86 | 1.72 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.8% | 14.5% |
| Tax rate | 2.4% | 3.3% |
| Debt/Equity ratio | 2.37 | 2.37 |
| Cost of debt | 5.1% | 40.0% |
| After-tax WACC | 5.8% | 31.5% |
| Selected WACC | 18.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| IDXG | Interpace Biosciences Inc | 2.37 | 1.68 | 0.51 |
| AIH | Aesthetic Medical International Holdings Group Ltd | 3.4 | 1.62 | 0.38 |
| CTHZ | Cancer Treatment Holdings Inc | 0.37 | 0.33 | 0.24 |
| FCHS | First Choice Healthcare Solutions Inc | 79.74 | 0.33 | 0 |
| IOM.V | Assure Holdings Corp | 0.14 | 1.89 | 1.67 |
| MBCN.TO | MindBeacon Holdings Inc | 0.02 | 0.91 | 0.89 |
| NLH.V | Nova Leap Health Corp | 0.16 | -0.01 | -0.01 |
| PMD | Psychemedics Corp | 0.02 | 1.03 | 1.02 |
| XGN | Exagen Inc | 0.19 | 0.96 | 0.81 |
| Low | High | |
| Unlevered beta | 0.4 | 0.75 |
| Relevered beta | 0.79 | 2.07 |
| Adjusted relevered beta | 0.86 | 1.72 |
IDXG'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 IDXG:
cost_of_equity (11.15%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.86) + 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.