NSPR WACC - Weighted Average Cost of Capital
The WACC of InspireMD Inc (NSPR) is 5.8%.
| Range | Selected | |
| Cost of equity | 5.4% - 8.0% | 6.7% |
| Tax rate | 0.2% - 0.2% | 0.2% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.2% - 6.5% | 5.8% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.33 | 0.56 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 8.0% |
| Tax rate | 0.2% | 0.2% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.2% | 6.5% |
| Selected WACC | 5.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| NSPR | InspireMD Inc | 0.91 | -0.05 | -0.02 |
| ARTH | Arch Therapeutics Inc | 1267524.8 | 1.23 | 0 |
| CEMI | Chembio Diagnostics Inc | 1.12 | 1.86 | 0.88 |
| EMDF | XL Rent Inc | 28.94 | -0.77 | -0.03 |
| OZSC | Ozop Energy Solutions Inc | 7.55 | 1.14 | 0.13 |
| SIEN | Sientra Inc | 26.62 | -1.12 | -0.04 |
| TELA | TELA Bio Inc | 0.96 | 0.45 | 0.23 |
| UEEC | United Health Products Inc | 0.02 | -0.93 | -0.91 |
| UNVC | Univec Conglomerate Inc | 0.42 | 1.05 | 0.74 |
| VYCO | Vycor Medical Inc | 0.19 | 1.53 | 1.29 |
| Low | High | |
| Unlevered beta | -0.01 | 0.17 |
| Relevered beta | 0 | 0.34 |
| Adjusted relevered beta | 0.33 | 0.56 |
NSPR'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 NSPR:
cost_of_equity (6.70%) = 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.