INX.V
Intouch Insight Ltd
Price:  
0.40 
CAD
Volume:  
12,500.00
Canada | IT Services
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INX.V WACC - Weighted Average Cost of Capital

The WACC of Intouch Insight Ltd (INX.V) is 9.1%.

The Cost of Equity of Intouch Insight Ltd (INX.V) is 9.65%.
The Cost of Debt of Intouch Insight Ltd (INX.V) is 10.15%.

Range Selected
Cost of equity 8.50% - 10.80% 9.65%
Tax rate 25.80% - 35.90% 30.85%
Cost of debt 5.10% - 15.20% 10.15%
WACC 7.6% - 10.6% 9.1%
WACC

INX.V WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.92 0.97
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.50% 10.80%
Tax rate 25.80% 35.90%
Debt/Equity ratio 0.25 0.25
Cost of debt 5.10% 15.20%
After-tax WACC 7.6% 10.6%
Selected WACC 9.1%

INX.V'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 INX.V:

cost_of_equity (9.65%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.92) + 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.