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IB Acquisition Corp. Common Stock (IBAC) — WACC Analysis

WACC Breakdown

IB Acquisition Corp. Common Stock (IBAC) has a weighted average cost of capital (WACC) of 9.4%. The cost of equity is 9.4%, derived from a beta of 1.00 and a risk-free rate of 5.2%. The after-tax cost of debt is 2.0%. The capital structure is 99.1% equity and 0.9% debt.

Interpretation

A WACC of 9.4% is moderate, reflecting the market's balanced risk assessment of IB Acquisition Corp. Common Stock.

Investors can compare IBAC's WACC of 9.4% against industry peers to gauge its relative financing costs. A beta of 1.00 reflects the stock's volatility relative to the broader market.

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VALUATION

IBAC WACC: 9.38% for IB Acquisition Corp. Common Stock

Current inputs imply a 9.45% cost of equity and a 2.00% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

IB Acquisition Corp. Common Stock Common Stock (IBAC) WACC Results
Weighted Average Cost of Capital
9.38%
Cost of Equity
9.45%
Risk-Free Rate5.22%
Beta1.00
Market Risk Premium4.23%
Cost of Debt
2.00%
Pre-Tax Cost of Debt2.00%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 99.09%($54.39M)
Debt: 0.91%($0.50M)
Equity Component
9.36%
99.09% × 9.45%
Debt Component
0.02%
0.91% × 2.00%

IB Acquisition Corp. Common Stock (IBAC) WACC in context

IB Acquisition Corp. Common Stock (IBAC) currently screens with an estimated WACC of 9.38%. That blends a 9.45% cost of equity, a 2.00% pre-tax cost of debt, and a 99.09% equity weight into the discount rate you would typically use in a DCF model.

falls into a common range for established public companies and is a practical DCF starting point.

What IBAC WACC implies

A 9.38% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates IBAC

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.00 and equity accounts for 99.09% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.