IINX WACC - Weighted Average Cost of Capital

The WACC of Ionix Technology Inc (IINX) is 12.5%.

The Cost of Equity of Ionix Technology Inc (IINX) is 138.15%.

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

	Range	Selected
Cost of equity	90.60% - 185.70%	138.15%
Tax rate	29.40% - 31.40%	30.40%
Cost of debt	15.60% - 15.60%	15.60%
WACC	12.1% - 12.9%	12.5%

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	18.86	32.29

Additional risk adjustments	0.0%	0.5%
Cost of equity	90.60%	185.70%

Tax rate	29.40%	31.40%
Debt/Equity ratio	78.16	78.16
Cost of debt	15.60%	15.60%

After-tax WACC	12.1%	12.9%


Selected WACC	12.5%

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 (138.15%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (18.86) + 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.