ICP.L WACC - Weighted Average Cost of Capital
The WACC of Intermediate Capital Group PLC (ICP.L) is 9.6%.
| Range | Selected | |
| Cost of equity | 7.8% - 10.8% | 9.3% |
| Tax rate | 8.7% - 10.0% | 9.35% |
| Cost of debt | 5.4% - 16.6% | 11% |
| WACC | 6.6% - 12.6% | 9.6% |
| Category | Low | High |
| Long-term bond rate | 3.7% | 4.2% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.68 | 0.87 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.8% | 10.8% |
| Tax rate | 8.7% | 10.0% |
| Debt/Equity ratio | 0.75 | 0.75 |
| Cost of debt | 5.4% | 16.6% |
| After-tax WACC | 6.6% | 12.6% |
| Selected WACC | 9.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ICP.L | Intermediate Capital Group PLC | 0.75 | 1.8 | 1.07 |
| ASHM.L | Ashmore Group PLC | 0.01 | 1.67 | 1.66 |
| BGN.MI | Banca Generali SpA | 2.65 | 0.92 | 0.27 |
| GIMB.BR | Gimv NV | 0.23 | 0.76 | 0.63 |
| HL.L | Hargreaves Lansdown PLC | 0 | 0.34 | 0.34 |
| LTA.PA | Altamir SCA | 0.1 | 0.19 | 0.17 |
| SNN.L | Sanne Group PLC | 0.1 | 0.29 | 0.26 |
| TKO.PA | Tikehau Capital SCA | 0.5 | 0.79 | 0.54 |
| VONN.SW | Vontobel Holding AG | 3.81 | 0.89 | 0.2 |
| VZN.SW | VZ Holding AG | 0.11 | 0.96 | 0.87 |
| Low | High | |
| Unlevered beta | 0.31 | 0.58 |
| Relevered beta | 0.52 | 0.81 |
| Adjusted relevered beta | 0.68 | 0.87 |
ICP.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 ICP.L:
cost_of_equity (9.30%) = risk_free_rate (3.95%) + equity_risk_premium (6.50%) * adjusted_beta (0.68) + 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.