IINX
Ionix Technology Inc
Price:  
0.00 
USD
Volume:  
159,010.00
China | Technology Hardware, Storage & Peripherals
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IINX WACC - Weighted Average Cost of Capital

The WACC of Ionix Technology Inc (IINX) is 12.6%.

The Cost of Equity of Ionix Technology Inc (IINX) is 148.75%.
The Cost of Debt of Ionix Technology Inc (IINX) is 15.60%.

Range Selected
Cost of equity 73.10% - 224.40% 148.75%
Tax rate 29.40% - 31.40% 30.40%
Cost of debt 15.60% - 15.60% 15.60%
WACC 11.8% - 13.4% 12.6%
WACC

IINX WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 15.04 39.21
Additional risk adjustments 0.0% 0.5%
Cost of equity 73.10% 224.40%
Tax rate 29.40% 31.40%
Debt/Equity ratio 78.16 78.16
Cost of debt 15.60% 15.60%
After-tax WACC 11.8% 13.4%
Selected WACC 12.6%

IINX'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 IINX:

cost_of_equity (148.75%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (15.04) + 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.