NARI
Inari Medical Inc
Price:  
79.97 
USD
Volume:  
2,358,189.00
United States | Health Care Equipment & Supplies
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NARI WACC - Weighted Average Cost of Capital

The WACC of Inari Medical Inc (NARI) is 8.4%.

The Cost of Equity of Inari Medical Inc (NARI) is 10.30%.
The Cost of Debt of Inari Medical Inc (NARI) is 7.00%.

Range Selected
Cost of equity 8.40% - 12.20% 10.30%
Tax rate 4.50% - 9.20% 6.85%
Cost of debt 7.00% - 7.00% 7.00%
WACC 7.6% - 9.3% 8.4%
WACC

NARI WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1 1.31
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.40% 12.20%
Tax rate 4.50% 9.20%
Debt/Equity ratio 1 1
Cost of debt 7.00% 7.00%
After-tax WACC 7.6% 9.3%
Selected WACC 8.4%

NARI'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 NARI:

cost_of_equity (10.30%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1) + 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.