INQD WACC - Weighted Average Cost of Capital
The WACC of Indoor Harvest Corp (INQD) is 4.3%.
| Range | Selected | |
| Cost of equity | 3.8% - 6.2% | 5% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 3.7% - 4.8% | 4.3% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | -0.02 | 0.24 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 3.8% | 6.2% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1.27 | 1.27 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 3.7% | 4.8% |
| Selected WACC | 4.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| INQD | Indoor Harvest Corp | 1.27 | -2.2 | -1.15 |
| APSI | Aqua Power Systems Inc | 0.09 | -0.58 | -0.54 |
| COVE.CN | Cover Technologies Inc | 0.06 | -0.12 | -0.11 |
| DOSE.CN | Rapid Dose Therapeutics Corp | 0.09 | -0.31 | -0.29 |
| IZO.CN | Izotropic Corp | 0.1 | -0.27 | -0.26 |
| PHCG | Pure Harvest Corporate Group Inc | 8.27 | -0.03 | 0 |
| PVNNF | PV Nano Cell Ltd | 6.62 | -1.8 | -0.31 |
| SIRE.CN | Sire Bioscience Inc | 0.09 | 1.08 | 1.01 |
| USDR | UAS Drone Corp | 0.06 | -1.03 | -0.99 |
| USLG | US Lighting Group Inc | 13.99 | 0.47 | 0.04 |
| WIFI.CN | American Aires Inc | 0.02 | 1.75 | 1.72 |
| Low | High | |
| Unlevered beta | -0.29 | -0.11 |
| Relevered beta | -0.52 | -0.13 |
| Adjusted relevered beta | -0.02 | 0.24 |
INQD'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 INQD:
cost_of_equity (5.00%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (-0.02) + 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.