I2D.WA WACC - Weighted Average Cost of Capital

The WACC of I2 Development SA (I2D.WA) is 9.5%.

The Cost of Equity of I2 Development SA (I2D.WA) is 14.25%.

The Cost of Debt of I2 Development SA (I2D.WA) is 6.65%.

	Range	Selected
Cost of equity	11.10% - 17.40%	14.25%
Tax rate	3.00% - 6.70%	4.85%
Cost of debt	5.20% - 8.10%	6.65%
WACC	7.5% - 11.5%	9.5%

WACC

I2D.WA WACC calculation

Category	Low	High

Long-term bond rate	7.2%	7.7%
Equity market risk premium	5.6%	6.6%
Adjusted beta	0.69	1.4

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.10%	17.40%

Tax rate	3.00%	6.70%
Debt/Equity ratio	1.47	1.47
Cost of debt	5.20%	8.10%

After-tax WACC	7.5%	11.5%


Selected WACC	9.5%

I2D.WA'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 I2D.WA:

cost_of_equity (14.25%) = risk_free_rate (7.45%) + equity_risk_premium (6.10%) * adjusted_beta (0.69) + 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.