IDIN.TA WACC - Weighted Average Cost of Capital

The WACC of IDI Insurance Company Ltd (IDIN.TA) is 12.4%.

The Cost of Equity of IDI Insurance Company Ltd (IDIN.TA) is 14.05%.

The Cost of Debt of IDI Insurance Company Ltd (IDIN.TA) is 5.00%.

	Range	Selected
Cost of equity	11.40% - 16.70%	14.05%
Tax rate	32.50% - 33.50%	33.00%
Cost of debt	5.00% - 5.00%	5.00%
WACC	10.1% - 14.6%	12.4%

WACC

IDIN.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	1.07	1.53

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.40%	16.70%

Tax rate	32.50%	33.50%
Debt/Equity ratio	0.19	0.19
Cost of debt	5.00%	5.00%

After-tax WACC	10.1%	14.6%


Selected WACC	12.4%

IDIN.TA'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 IDIN.TA:

cost_of_equity (14.05%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (1.07) + 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.