IINX WACC - Weighted Average Cost of Capital
The WACC of Ionix Technology Inc (IINX) is 12.8%.
| Range | Selected | |
| Cost of equity | 114.7% - 202.4% | 158.55% |
| Tax rate | 29.4% - 31.4% | 30.4% |
| Cost of debt | 15.6% - 15.6% | 15.6% |
| WACC | 12.4% - 13.2% | 12.8% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 24.09 | 35.27 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 114.7% | 202.4% |
| Tax rate | 29.4% | 31.4% |
| Debt/Equity ratio | 78.16 | 78.16 |
| Cost of debt | 15.6% | 15.6% |
| After-tax WACC | 12.4% | 13.2% |
| Selected WACC | 12.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| IINX | Ionix Technology Inc | 78.16 | 179.7 | 3.26 |
| CAN | Canaan Inc | 0.02 | 1.22 | 1.2 |
| NTAP | NetApp Inc | 0.15 | 1.52 | 1.38 |
| OSS | One Stop Systems Inc | 0.01 | 1.52 | 1.51 |
| OTIVF | On Track Innovations Ltd | 1.95 | 0.81 | 0.34 |
| SCKT | Socket Mobile Inc | 0.41 | 0.82 | 0.64 |
| STX | Seagate Technology PLC | 0.18 | 1.95 | 1.73 |
| TACT | TransAct Technologies Inc | 0.08 | 0.68 | 0.65 |
| TTD.V | Tinkerine Studios Ltd | 0.37 | 0.97 | 0.77 |
| VIDE | Video Display Corp | 1215.42 | -0.63 | 0 |
| Low | High | |
| Unlevered beta | 0.72 | 1.27 |
| Relevered beta | 35.46 | 52.15 |
| Adjusted relevered beta | 24.09 | 35.27 |
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 (158.55%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (24.09) + 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.