IGOI
iGO Inc
Price:  
5.49 
USD
Volume:  
1,010.00
United States | Technology Hardware, Storage & Peripherals
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IGOI WACC - Weighted Average Cost of Capital

The WACC of iGO Inc (IGOI) is 8.5%.

The Cost of Equity of iGO Inc (IGOI) is 11.95%.
The Cost of Debt of iGO Inc (IGOI) is 5.00%.

Range Selected
Cost of equity 10.30% - 13.60% 11.95%
Tax rate 0.50% - 11.70% 6.10%
Cost of debt 5.00% - 5.00% 5.00%
WACC 7.7% - 9.2% 8.5%
WACC

IGOI WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 4.2% 5.2%
Adjusted beta 1.68 1.8
Additional risk adjustments 0.0% 0.5%
Cost of equity 10.30% 13.60%
Tax rate 0.50% 11.70%
Debt/Equity ratio 0.92 0.92
Cost of debt 5.00% 5.00%
After-tax WACC 7.7% 9.2%
Selected WACC 8.5%

IGOI'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 IGOI:

cost_of_equity (11.95%) = risk_free_rate (3.45%) + equity_risk_premium (4.70%) * adjusted_beta (1.68) + 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.