ITGR WACC - Weighted Average Cost of Capital
The WACC of Integer Holdings Corp (ITGR) is 7.6%.
| Range | Selected | |
| Cost of equity | 7.1% - 9.5% | 8.3% |
| Tax rate | 12.5% - 14.5% | 13.5% |
| Cost of debt | 4.3% - 7.0% | 5.65% |
| WACC | 6.5% - 8.8% | 7.6% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.71 | 0.83 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.1% | 9.5% |
| Tax rate | 12.5% | 14.5% |
| Debt/Equity ratio | 0.25 | 0.25 |
| Cost of debt | 4.3% | 7.0% |
| After-tax WACC | 6.5% | 8.8% |
| Selected WACC | 7.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ITGR | Integer Holdings Corp | 0.25 | 0.69 | 0.57 |
| CMD | Cantel Medical Corp | 0.31 | 1.55 | 1.22 |
| CNMD | Conmed Corp | 0.51 | 0.28 | 0.19 |
| IART | Integra Lifesciences Holdings Corp | 1.91 | 1.19 | 0.45 |
| IVC | Invacare Corp | 354.95 | 0.24 | 0 |
| LIVN | LivaNova PLC | 0.26 | 0.59 | 0.48 |
| NTUS | Natus Medical Inc | 0 | 0.23 | 0.23 |
| NUVA | NuVasive Inc | 0.43 | 0.94 | 0.69 |
| OFIX | Orthofix Medical Inc | 0.37 | 1.05 | 0.8 |
| VREX | Varex Imaging Corp | 1.59 | 1.92 | 0.81 |
| Low | High | |
| Unlevered beta | 0.47 | 0.62 |
| Relevered beta | 0.57 | 0.75 |
| Adjusted relevered beta | 0.71 | 0.83 |
ITGR'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 ITGR:
cost_of_equity (8.30%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.71) + 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.