IES.TA WACC - Weighted Average Cost of Capital

The WACC of IES Holdings Ltd (IES.TA) is 9.8%.

The Cost of Equity of IES Holdings Ltd (IES.TA) is 9.85%.

The Cost of Debt of IES Holdings Ltd (IES.TA) is 9.80%.

	Range	Selected
Cost of equity	8.90% - 10.80%	9.85%
Tax rate	18.80% - 20.30%	19.55%
Cost of debt	5.40% - 14.20%	9.80%
WACC	8.9% - 10.8%	9.8%

WACC

IES.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.66	0.69

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.90%	10.80%

Tax rate	18.80%	20.30%
Debt/Equity ratio	0	0
Cost of debt	5.40%	14.20%

After-tax WACC	8.9%	10.8%


Selected WACC	9.8%

IES.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 IES.TA:

cost_of_equity (9.85%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.66) + 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.