INSG
Inseego Corp
Price:  
8.25 
USD
Volume:  
87,224.00
United States | Communications Equipment
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INSG WACC - Weighted Average Cost of Capital

The WACC of Inseego Corp (INSG) is 9.8%.

The Cost of Equity of Inseego Corp (INSG) is 11.70%.
The Cost of Debt of Inseego Corp (INSG) is 5.50%.

Range Selected
Cost of equity 9.80% - 13.60% 11.70%
Tax rate 0.70% - 1.20% 0.95%
Cost of debt 4.00% - 7.00% 5.50%
WACC 8.0% - 11.6% 9.8%
WACC

INSG WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.29 1.56
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.80% 13.60%
Tax rate 0.70% 1.20%
Debt/Equity ratio 0.44 0.44
Cost of debt 4.00% 7.00%
After-tax WACC 8.0% 11.6%
Selected WACC 9.8%

INSG'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 INSG:

cost_of_equity (11.70%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.29) + 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.