IBPO.L
iEnergizer Ltd
Price:  
59.80 
GBP
Volume:  
1,157,840.00
Guernsey | IT Services
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

IBPO.L WACC - Weighted Average Cost of Capital

The WACC of iEnergizer Ltd (IBPO.L) is 8.7%.

The Cost of Equity of iEnergizer Ltd (IBPO.L) is 12.55%.
The Cost of Debt of iEnergizer Ltd (IBPO.L) is 6.30%.

Range Selected
Cost of equity 11.10% - 14.00% 12.55%
Tax rate 12.80% - 17.50% 15.15%
Cost of debt 4.60% - 8.00% 6.30%
WACC 7.4% - 10.1% 8.7%
WACC

IBPO.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 1.19 1.29
Additional risk adjustments 0.0% 0.5%
Cost of equity 11.10% 14.00%
Tax rate 12.80% 17.50%
Debt/Equity ratio 1.1 1.1
Cost of debt 4.60% 8.00%
After-tax WACC 7.4% 10.1%
Selected WACC 8.7%

IBPO.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 IBPO.L:

cost_of_equity (12.55%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (1.19) + 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.