INLX WACC - Weighted Average Cost of Capital
The WACC of Intellinetics Inc (INLX) is 6.0%.
| Range | Selected | |
| Cost of equity | 5.3% - 6.8% | 6.05% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 4.7% - 7.0% | 5.85% |
| WACC | 5.2% - 6.7% | 6.0% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.3 | 0.34 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.3% | 6.8% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 0.03 | 0.03 |
| Cost of debt | 4.7% | 7.0% |
| After-tax WACC | 5.2% | 6.7% |
| Selected WACC | 6.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| INLX | Intellinetics Inc | 0.03 | -0.1 | -0.09 |
| HS.CN | Healthspace Data Systems Ltd | 0.07 | -1.45 | -1.38 |
| ID.V | Identillect Technologies Corp | 0.55 | 1.19 | 0.85 |
| SSFT | Sonasoft Corp | 1.24 | 0.3 | 0.16 |
| TCS.TO | Tecsys Inc | 0 | 0.71 | 0.71 |
| VLDI | Validian Corp | 20.46 | -1.74 | -0.11 |
| VMY.H.V | Voice Mobility International Inc | 46.55 | 1.38 | 0.04 |
| VSMR | Verify Smart Corp | 0.06 | -1.22 | -1.17 |
| Low | High | |
| Unlevered beta | -0.1 | 0.06 |
| Relevered beta | -0.04 | 0.01 |
| Adjusted relevered beta | 0.3 | 0.34 |
INLX'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 INLX:
cost_of_equity (6.05%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.3) + 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.