ITDN
Interdyne Co
Price:  
USD
Volume:  
10,950
United States | Finance and Insurance

ITDN WACC - Weighted Average Cost of Capital

The WACC of Interdyne Co (ITDN) is 5.6%.

The Cost of Equity of Interdyne Co (ITDN) is 6.3%.
The Cost of Debt of Interdyne Co (ITDN) is 5%.

RangeSelected
Cost of equity5.4% - 7.2%6.3%
Tax rate2.7% - 2.7%2.7%
Cost of debt5.0% - 5.0%5%
WACC5.1% - 6.0%5.6%
WACC

ITDN WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium4.6%5.6%
Adjusted beta0.330.42
Additional risk adjustments0.0%0.5%
Cost of equity5.4%7.2%
Tax rate2.7%2.7%
Debt/Equity ratio
11
Cost of debt5.0%5.0%
After-tax WACC5.1%6.0%
Selected WACC5.6%

ITDN'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 ITDN:

cost_of_equity (6.30%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.33) + 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.