The WACC of IDE Group Holdings PLC (IDE.L) is 6.9%.
Range | Selected | |
Cost of equity | 10.9% - 14.0% | 12.45% |
Tax rate | 37.4% - 45.4% | 41.4% |
Cost of debt | 4.0% - 6.0% | 5% |
WACC | 6.0% - 7.8% | 6.9% |
Category | Low | High |
Long-term bond rate | 4.4% | 4.9% |
Equity market risk premium | 6.4% | 7.4% |
Adjusted beta | 1 | 1.15 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 10.9% | 14.0% |
Tax rate | 37.4% | 45.4% |
Debt/Equity ratio | 1.37 | 1.37 |
Cost of debt | 4.0% | 6.0% |
After-tax WACC | 6.0% | 7.8% |
Selected WACC | 6.9% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
IDE.L | IDE Group Holdings PLC | 1.37 | 0.92 | 0.51 |
DHH.MI | DHH SpA | 0.16 | 433985.88 | 396752.42 |
KFEIN.IS | Kafein Yazilim Hizmetleri Ticaret AS | 0.05 | 0.92 | 0.9 |
MMX.L | Minds Machines Group Ltd | 0.37 | 0.71 | 0.58 |
P2B.WA | Planet B2B SA | 0 | 0.79 | 0.79 |
SYS.L | SysGroup PLC | 0.31 | 0.4 | 0.34 |
TIE.AS | TIE Kinetix NV | 0.01 | 1.07 | 1.06 |
WIIT.MI | Wiit SpA | 0.54 | 0.49 | 0.37 |
ZIGN.ST | ZignSec AB (publ) | 0.06 | -0.85 | -0.82 |
MTLO.V | Martello Technologies Group Inc | 2.12 | 1.48 | 0.65 |
Low | High | |
Unlevered beta | 0.55 | 0.71 |
Relevered beta | 1 | 1.22 |
Adjusted relevered beta | 1 | 1.15 |
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 IDE.L:
cost_of_equity (12.45%) = risk_free_rate (4.65%) + equity_risk_premium (6.90%) * adjusted_beta (1) + 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.