IBI.TA WACC - Weighted Average Cost of Capital

The WACC of IBI Investment House Ltd (IBI.TA) is 11.0%.

The Cost of Equity of IBI Investment House Ltd (IBI.TA) is 11.40%.

The Cost of Debt of IBI Investment House Ltd (IBI.TA) is 5.75%.

	Range	Selected
Cost of equity	10.00% - 12.80%	11.40%
Tax rate	25.00% - 27.30%	26.15%
Cost of debt	5.40% - 6.10%	5.75%
WACC	9.7% - 12.3%	11.0%

WACC

IBI.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.84	0.97

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.00%	12.80%

Tax rate	25.00%	27.30%
Debt/Equity ratio	0.05	0.05
Cost of debt	5.40%	6.10%

After-tax WACC	9.7%	12.3%


Selected WACC	11.0%

IBI.TA'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 IBI.TA:

cost_of_equity (11.40%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.84) + 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.