INSG WACC - Weighted Average Cost of Capital

The WACC of Inseego Corp (INSG) is 11.4%.

The Cost of Equity of Inseego Corp (INSG) is 11.90%.

The Cost of Debt of Inseego Corp (INSG) is 9.80%.

	Range	Selected
Cost of equity	10.50% - 13.30%	11.90%
Tax rate	0.70% - 1.20%	0.95%
Cost of debt	4.00% - 15.60%	9.80%
WACC	9.0% - 13.8%	11.4%

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	1.44	1.51

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.50%	13.30%

Tax rate	0.70%	1.20%
Debt/Equity ratio	0.31	0.31
Cost of debt	4.00%	15.60%

After-tax WACC	9.0%	13.8%


Selected WACC	11.4%

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 (11.90%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.44) + 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.