INVT
Inventergy Global Inc
Price:  
0.02 
USD
Volume:  
2,530.00
United States | Communications Equipment
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INVT WACC - Weighted Average Cost of Capital

The WACC of Inventergy Global Inc (INVT) is 5.6%.

The Cost of Equity of Inventergy Global Inc (INVT) is 6.75%.
The Cost of Debt of Inventergy Global Inc (INVT) is 5.75%.

Range Selected
Cost of equity 4.70% - 8.80% 6.75%
Tax rate 0.10% - 4.40% 2.25%
Cost of debt 4.50% - 7.00% 5.75%
WACC 4.5% - 6.7% 5.6%
WACC

INVT WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.17 0.7
Additional risk adjustments 0.0% 0.5%
Cost of equity 4.70% 8.80%
Tax rate 0.10% 4.40%
Debt/Equity ratio 42.47 42.47
Cost of debt 4.50% 7.00%
After-tax WACC 4.5% 6.7%
Selected WACC 5.6%

INVT'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 INVT:

cost_of_equity (6.75%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.17) + 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.