IAG.WA WACC - Weighted Average Cost of Capital

The WACC of Satis Group SA (IAG.WA) is 13.4%.

The Cost of Equity of Satis Group SA (IAG.WA) is 13.75%.

The Cost of Debt of Satis Group SA (IAG.WA) is 5.00%.

	Range	Selected
Cost of equity	12.70% - 14.80%	13.75%
Tax rate	4.10% - 9.60%	6.85%
Cost of debt	5.00% - 5.00%	5.00%
WACC	12.4% - 14.4%	13.4%

WACC

IAG.WA WACC calculation

Category	Low	High

Long-term bond rate	7.2%	7.7%
Equity market risk premium	5.6%	6.6%
Adjusted beta	0.97	1

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.70%	14.80%

Tax rate	4.10%	9.60%
Debt/Equity ratio	0.04	0.04
Cost of debt	5.00%	5.00%

After-tax WACC	12.4%	14.4%


Selected WACC	13.4%

IAG.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 IAG.WA:

cost_of_equity (13.75%) = risk_free_rate (7.45%) + equity_risk_premium (6.10%) * adjusted_beta (0.97) + 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.