IDVP.ME WACC - Weighted Average Cost of Capital

The WACC of Invest-Development PAO (IDVP.ME) is 21.0%.

The Cost of Equity of Invest-Development PAO (IDVP.ME) is 21.10%.

The Cost of Debt of Invest-Development PAO (IDVP.ME) is 8.90%.

	Range	Selected
Cost of equity	20.30% - 21.90%	21.10%
Tax rate	16.90% - 27.80%	22.35%
Cost of debt	8.90% - 8.90%	8.90%
WACC	20.2% - 21.9%	21.0%

WACC

IDVP.ME WACC calculation

Category	Low	High

Long-term bond rate	15.8%	16.3%
Equity market risk premium	11.7%	12.7%
Adjusted beta	0.38	0.41

Additional risk adjustments	0.0%	0.5%
Cost of equity	20.30%	21.90%

Tax rate	16.90%	27.80%
Debt/Equity ratio	0	0
Cost of debt	8.90%	8.90%

After-tax WACC	20.2%	21.9%


Selected WACC	21.0%

IDVP.ME'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 IDVP.ME:

cost_of_equity (21.10%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (0.38) + 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.