INGN WACC - Weighted Average Cost of Capital
The WACC of Inogen Inc (INGN) is 6.8%.
| Range | Selected | |
| Cost of equity | 6.5% - 10.9% | 8.7% |
| Tax rate | 1.2% - 4.7% | 2.95% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.7% - 7.8% | 6.8% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.57 | 1.07 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.5% | 10.9% |
| Tax rate | 1.2% | 4.7% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.7% | 7.8% |
| Selected WACC | 6.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| INGN | Inogen Inc | 0.83 | 1.21 | 0.67 |
| ARAY | Accuray Inc | 1.03 | 2.05 | 1.02 |
| AWH | Aspira Women's Health Inc | 1.01 | -0.53 | -0.26 |
| BDX | Becton Dickinson and Co | 0.4 | 0.16 | 0.11 |
| CRY | CryoLife Inc | 0.42 | 1.54 | 1.09 |
| CSII | Cardiovascular Systems Inc | 0.02 | 0.74 | 0.72 |
| CUTR | Cutera Inc | 955.87 | 0.4 | 0 |
| NTUS | Natus Medical Inc | 0 | 0.23 | 0.23 |
| OFIX | Orthofix Medical Inc | 0.37 | 1.05 | 0.77 |
| TCMD | Tactile Systems Technology Inc | 0.11 | 0.5 | 0.45 |
| VAPO | Vapotherm Inc | 7.9 | -0.47 | -0.05 |
| Low | High | |
| Unlevered beta | 0.23 | 0.67 |
| Relevered beta | 0.36 | 1.1 |
| Adjusted relevered beta | 0.57 | 1.07 |
INGN'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 INGN:
cost_of_equity (8.70%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.57) + 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.