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Innoviva, Inc. Common Stock (INVA) — WACC Analysis

WACC Breakdown

Innoviva, Inc. Common Stock (INVA) has a weighted average cost of capital (WACC) of 7.4%. The cost of equity is 7.7%, derived from a beta of 0.37 and a risk-free rate of 5.2%. The after-tax cost of debt is 5.6%. The capital structure is 85.6% equity and 14.4% debt.

Interpretation

A WACC of 7.4% suggests that the market views Innoviva, Inc. Common Stock as relatively low-risk, with a lower cost of financing.

Investors can compare INVA's WACC of 7.4% against industry peers to gauge its relative financing costs. A beta of 0.37 reflects the stock's volatility relative to the broader market.

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VALUATION

INVA WACC: 7.37% for Innoviva, Inc. Common Stock

Current inputs imply a 7.67% cost of equity and a 7.05% 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

Innoviva, Inc. Common Stock Common Stock (INVA) WACC Results
Weighted Average Cost of Capital
7.37%
Cost of Equity
7.67%
Risk-Free Rate5.22%
Beta0.37
Market Risk Premium4.23%
Cost of Debt
5.57%
Pre-Tax Cost of Debt7.05%
Tax Rate21.00%
Tax Shield1.48%
Capital Structure
Equity: 85.57%($1532.33M)
Debt: 14.43%($258.45M)
Equity Component
6.57%
85.57% × 7.67%
Debt Component
0.80%
14.43% × 5.57%

Innoviva, Inc. Common Stock (INVA) WACC in context

Innoviva, Inc. Common Stock (INVA) currently screens with an estimated WACC of 7.37%. That blends a 7.67% cost of equity, a 7.05% pre-tax cost of debt, and a 85.57% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively low discount rate, which usually supports higher DCF values.

What INVA WACC implies

A 7.37% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates INVA

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.37 and equity accounts for 85.57% 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.