IIIV
I3 Verticals Inc
Price:  
26.90 
USD
Volume:  
247,377.00
United States | IT Services
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IIIV WACC - Weighted Average Cost of Capital

The WACC of I3 Verticals Inc (IIIV) is 7.1%.

The Cost of Equity of I3 Verticals Inc (IIIV) is 7.25%.
The Cost of Debt of I3 Verticals Inc (IIIV) is 6.55%.

Range Selected
Cost of equity 6.40% - 8.10% 7.25%
Tax rate 22.00% - 28.40% 25.20%
Cost of debt 6.10% - 7.00% 6.55%
WACC 6.3% - 8.0% 7.1%
WACC

IIIV WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.54 0.57
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.40% 8.10%
Tax rate 22.00% 28.40%
Debt/Equity ratio 0.03 0.03
Cost of debt 6.10% 7.00%
After-tax WACC 6.3% 8.0%
Selected WACC 7.1%

IIIV'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 IIIV:

cost_of_equity (7.25%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.54) + 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.