INEO.V WACC - Weighted Average Cost of Capital

The WACC of INEO Tech Corp (INEO.V) is 7.2%.

The Cost of Equity of INEO Tech Corp (INEO.V) is 8.35%.

The Cost of Debt of INEO Tech Corp (INEO.V) is 6.80%.

	Range	Selected
Cost of equity	6.80% - 9.90%	8.35%
Tax rate	26.20% - 27.00%	26.60%
Cost of debt	6.60% - 7.00%	6.80%
WACC	6.2% - 8.3%	7.2%

WACC

INEO.V WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.58	0.83

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.80%	9.90%

Tax rate	26.20%	27.00%
Debt/Equity ratio	0.51	0.51
Cost of debt	6.60%	7.00%

After-tax WACC	6.2%	8.3%


Selected WACC	7.2%

INEO.V'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 INEO.V:

cost_of_equity (8.35%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.58) + 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.