The WACC of Interdyne Co (ITDN) is 5.6%.
Range | Selected | |
Cost of equity | 5.4% - 7.2% | 6.3% |
Tax rate | 2.7% - 2.7% | 2.7% |
Cost of debt | 5.0% - 5.0% | 5% |
WACC | 5.1% - 6.0% | 5.6% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.33 | 0.42 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 5.4% | 7.2% |
Tax rate | 2.7% | 2.7% |
Debt/Equity ratio | 1 | 1 |
Cost of debt | 5.0% | 5.0% |
After-tax WACC | 5.1% | 6.0% |
Selected WACC | 5.6% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
ITDN | Interdyne Co | 0.81 | 3.55 | 1.98 |
ATMS | Artemis Therapeutics Inc | 0 | 0.46 | 0.46 |
FCIC | FCCC Inc | 25.43 | -0.21 | -0.01 |
GCCC.V | GCC Global Capital Corp | 4.35 | 1.09 | 0.21 |
GWSN | Gulf West Security Network Inc | 937720 | -2.09 | 0 |
LLL.CN | Lanebury Growth Capital Ltd | 6.66 | -1.16 | -0.16 |
NTPY | Netpay International Inc | 54.41 | -0.55 | -0.01 |
PTEL | Pegasus Tel Inc | 0.02 | 1.14 | 1.11 |
STQN | Strategic Acquisitions Inc | 0.59 | 0.26 | 0.17 |
VBVT | Viabuilt Ventures Inc | 158.06 | 0 | 0 |
ZENO | Zenosense Inc | 18.93 | -0.27 | -0.01 |
Low | High | |
Unlevered beta | 0 | 0.17 |
Relevered beta | 0 | 0.13 |
Adjusted relevered beta | 0.33 | 0.42 |
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.