INSW
International Seaways Inc
Price:  
41.12 
USD
Volume:  
489,471.00
United States | Oil, Gas & Consumable Fuels
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INSW WACC - Weighted Average Cost of Capital

The WACC of International Seaways Inc (INSW) is 8.6%.

The Cost of Equity of International Seaways Inc (INSW) is 9.65%.
The Cost of Debt of International Seaways Inc (INSW) is 5.35%.

Range Selected
Cost of equity 8.40% - 10.90% 9.65%
Tax rate 0.20% - 0.40% 0.30%
Cost of debt 4.80% - 5.90% 5.35%
WACC 7.5% - 9.6% 8.6%
WACC

INSW WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.99 1.09
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.40% 10.90%
Tax rate 0.20% 0.40%
Debt/Equity ratio 0.35 0.35
Cost of debt 4.80% 5.90%
After-tax WACC 7.5% 9.6%
Selected WACC 8.6%

INSW'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 INSW:

cost_of_equity (9.65%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.99) + 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.