IBEX
Ibex Ltd
Price:  
25.78 
USD
Volume:  
225,524.00
United States | IT Services
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IBEX WACC - Weighted Average Cost of Capital

The WACC of Ibex Ltd (IBEX) is 8.3%.

The Cost of Equity of Ibex Ltd (IBEX) is 8.35%.
The Cost of Debt of Ibex Ltd (IBEX) is 8.95%.

Range Selected
Cost of equity 7.20% - 9.50% 8.35%
Tax rate 16.30% - 19.40% 17.85%
Cost of debt 4.50% - 13.40% 8.95%
WACC 7.2% - 9.5% 8.3%
WACC

IBEX WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.72 0.82
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.20% 9.50%
Tax rate 16.30% 19.40%
Debt/Equity ratio 0 0
Cost of debt 4.50% 13.40%
After-tax WACC 7.2% 9.5%
Selected WACC 8.3%

IBEX'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 IBEX:

cost_of_equity (8.35%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.72) + 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.