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ICZOOM Group Inc. Class A Ordinary Shares (IZM) — WACC Analysis

WACC Breakdown

ICZOOM Group Inc. Class A Ordinary Shares (IZM) has a weighted average cost of capital (WACC) of 12.9%. The cost of equity is 8.9%, derived from a beta of 1.00 and a risk-free rate of 4.7%. The after-tax cost of debt is 20.9%. The capital structure is 66.6% equity and 33.4% debt.

Interpretation

A WACC of 12.9% indicates that the market perceives ICZOOM Group Inc. Class A Ordinary Shares as higher-risk, requiring a greater return to compensate investors.

Investors can compare IZM's WACC of 12.9% 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

IZM WACC: 12.91% for ICZOOM Group Inc. Class A Ordinary Shares

Current inputs imply a 8.90% cost of equity and a 26.47% 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

ICZOOM Group Inc. Class A Ordinary Shares Common Stock (IZM) WACC Results
Weighted Average Cost of Capital
12.91%
Cost of Equity
8.90%
Risk-Free Rate4.67%
Beta1.00
Market Risk Premium4.23%
Cost of Debt
20.91%
Pre-Tax Cost of Debt26.47%
Tax Rate21.00%
Tax Shield5.56%
Capital Structure
Equity: 66.61%($2.99M)
Debt: 33.39%($1.50M)
Equity Component
5.93%
66.61% × 8.90%
Debt Component
6.98%
33.39% × 20.91%

ICZOOM Group Inc. Class A Ordinary Shares (IZM) WACC in context

ICZOOM Group Inc. Class A Ordinary Shares (IZM) currently screens with an estimated WACC of 12.91%. That blends a 8.90% cost of equity, a 26.47% pre-tax cost of debt, and a 66.61% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

What IZM WACC implies

A 12.91% discount rate screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

How this page calculates IZM

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 66.61% 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.

IZM WACC: 12.91% — ICZOOM Group Inc. Class A Ordinary Shares Cost of Capital (August 2026) | DeepViews