INLB WACC - Weighted Average Cost of Capital

The WACC of Item 9 Labs Corp (INLB) is 9.0%.

The Cost of Equity of Item 9 Labs Corp (INLB) is 21,254.10%.

The Cost of Debt of Item 9 Labs Corp (INLB) is 8.50%.

	Range	Selected
Cost of equity	10,445.60% - 32,062.60%	21,254.10%
Tax rate	-% - 0.30%	0.15%
Cost of debt	7.00% - 10.00%	8.50%
WACC	7.3% - 10.8%	9.0%

WACC

INLB WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	4.6%	5.6%
Adjusted beta	2269.94	5724.6

Additional risk adjustments	0.0%	0.5%
Cost of equity	10,445.60%	32,062.60%

Tax rate	-%	0.30%
Debt/Equity ratio	38316.43	38316.43
Cost of debt	7.00%	10.00%

After-tax WACC	7.3%	10.8%


Selected WACC	9.0%

INLB'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 INLB:

cost_of_equity (21,254.10%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (2269.94) + 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.