IVST WACC - Weighted Average Cost of Capital
The WACC of Innovest Global Inc (IVST) is 4.5%.
| Range | Selected | |
| Cost of equity | 3.0% - 29.9% | 16.45% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 3.6% - 5.3% | 4.5% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | -0.62 | 4.12 |
| Additional risk adjustments | 2.0% | 2.5% |
| Cost of equity | 3.0% | 29.9% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 15.08 | 15.08 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 3.6% | 5.3% |
| Selected WACC | 4.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| IVST | Innovest Global Inc | 15.08 | -22.63 | -1.88 |
| APSI | Aqua Power Systems Inc | 0.07 | -0.58 | -0.55 |
| DOSE.CN | Rapid Dose Therapeutics Corp | 0.09 | -0.31 | -0.29 |
| FWAV | Fourth Wave Energy Inc | 0.15 | 0.91 | 0.82 |
| MCOA | Marijuana Company Of America Inc | 171.68 | -0.09 | 0 |
| PACR.CN | Pac Roots Cannabis Corp | 0.04 | 1.07 | 1.03 |
| PVNNF | PV Nano Cell Ltd | 6.62 | -1.8 | -0.31 |
| RMHB | Rocky Mountain High Brands Inc | 0.48 | 0.32 | 0.24 |
| SIRE.CN | Sire Bioscience Inc | 0.09 | 1.08 | 1.01 |
| TBI.CN | Thoughtful Brands Inc | 0.04 | 0.94 | 0.91 |
| USDR | UAS Drone Corp | 0.06 | -1.03 | -0.99 |
| Low | High | |
| Unlevered beta | -0.29 | 0.24 |
| Relevered beta | -1.42 | 5.66 |
| Adjusted relevered beta | -0.62 | 4.12 |
IVST'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 IVST:
cost_of_equity (16.45%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (-0.62) + risk_adjustments (2.25%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.