I3E.L WACC - Weighted Average Cost of Capital

The WACC of I3 Energy PLC (I3E.L) is 10.5%.

The Cost of Equity of I3 Energy PLC (I3E.L) is 11.45%.

The Cost of Debt of I3 Energy PLC (I3E.L) is 7.05%.

	Range	Selected
Cost of equity	8.00% - 14.90%	11.45%
Tax rate	7.30% - 16.20%	11.75%
Cost of debt	6.50% - 7.60%	7.05%
WACC	7.6% - 13.3%	10.5%

WACC

I3E.L WACC calculation

Category	Low	High

Long-term bond rate	4.0%	4.5%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.67	1.42

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.00%	14.90%

Tax rate	7.30%	16.20%
Debt/Equity ratio	0.23	0.23
Cost of debt	6.50%	7.60%

After-tax WACC	7.6%	13.3%


Selected WACC	10.5%

I3E.L'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 I3E.L:

cost_of_equity (11.45%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.67) + 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.