ICT.AS WACC - Weighted Average Cost of Capital

The WACC of ICT Group NV (ICT.AS) is 9.4%.

The Cost of Equity of ICT Group NV (ICT.AS) is 10.60%.

The Cost of Debt of ICT Group NV (ICT.AS) is 5.50%.

	Range	Selected
Cost of equity	8.90% - 12.30%	10.60%
Tax rate	26.90% - 27.90%	27.40%
Cost of debt	4.00% - 7.00%	5.50%
WACC	7.8% - 11.0%	9.4%

WACC

ICT.AS WACC calculation

Category	Low	High

Long-term bond rate	2.3%	2.8%
Equity market risk premium	6.6%	7.6%
Adjusted beta	0.99	1.18

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.90%	12.30%

Tax rate	26.90%	27.90%
Debt/Equity ratio	0.23	0.23
Cost of debt	4.00%	7.00%

After-tax WACC	7.8%	11.0%


Selected WACC	9.4%

ICT.AS'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 ICT.AS:

cost_of_equity (10.60%) = risk_free_rate (2.55%) + equity_risk_premium (7.10%) * adjusted_beta (0.99) + 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.