IDHC.L WACC - Weighted Average Cost of Capital

The WACC of Integrated Diagnostics Holdings PLC (IDHC.L) is 8.2%.

The Cost of Equity of Integrated Diagnostics Holdings PLC (IDHC.L) is 8.40%.

The Cost of Debt of Integrated Diagnostics Holdings PLC (IDHC.L) is 9.50%.

	Range	Selected
Cost of equity	7.10% - 9.70%	8.40%
Tax rate	35.10% - 36.70%	35.90%
Cost of debt	4.70% - 14.30%	9.50%
WACC	6.7% - 9.7%	8.2%

WACC

IDHC.L WACC calculation

Category	Low	High

Long-term bond rate	4.0%	4.5%
Equity market risk premium	5.5%	6.5%
Adjusted beta	0.56	0.73

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.10%	9.70%

Tax rate	35.10%	36.70%
Debt/Equity ratio	0.09	0.09
Cost of debt	4.70%	14.30%

After-tax WACC	6.7%	9.7%


Selected WACC	8.2%

IDHC.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 IDHC.L:

cost_of_equity (8.40%) = risk_free_rate (4.25%) + equity_risk_premium (6.00%) * adjusted_beta (0.56) + 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.