ITRI
Itron Inc
Price:  
135.53 
USD
Volume:  
360,592.00
United States | Electronic Equipment, Instruments & Components
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ITRI WACC - Weighted Average Cost of Capital

The WACC of Itron Inc (ITRI) is 9.7%.

The Cost of Equity of Itron Inc (ITRI) is 11.00%.
The Cost of Debt of Itron Inc (ITRI) is 4.25%.

Range Selected
Cost of equity 9.30% - 12.70% 11.00%
Tax rate 19.80% - 28.40% 24.10%
Cost of debt 4.00% - 4.50% 4.25%
WACC 8.3% - 11.1% 9.7%
WACC

ITRI WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.18 1.39
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.30% 12.70%
Tax rate 19.80% 28.40%
Debt/Equity ratio 0.2 0.2
Cost of debt 4.00% 4.50%
After-tax WACC 8.3% 11.1%
Selected WACC 9.7%

ITRI'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 ITRI:

cost_of_equity (11.00%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.18) + 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.