INNI
Innovaro Inc
Price:  
0.01 
USD
Volume:  
33,540.00
United States | Professional Services
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INNI WACC - Weighted Average Cost of Capital

The WACC of Innovaro Inc (INNI) is 9.0%.

The Cost of Equity of Innovaro Inc (INNI) is 31.85%.
The Cost of Debt of Innovaro Inc (INNI) is 8.70%.

Range Selected
Cost of equity 5.10% - 58.60% 31.85%
Tax rate 2.00% - 2.20% 2.10%
Cost of debt 7.00% - 10.40% 8.70%
WACC 6.8% - 11.1% 9.0%
WACC

INNI WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta -1.9 7.8
Additional risk adjustments 10.0% 10.5%
Cost of equity 5.10% 58.60%
Tax rate 2.00% 2.20%
Debt/Equity ratio 52.26 52.26
Cost of debt 7.00% 10.40%
After-tax WACC 6.8% 11.1%
Selected WACC 9.0%

INNI'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 INNI:

cost_of_equity (31.85%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (-1.9) + risk_adjustments (10.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.