IFI.WA WACC - Weighted Average Cost of Capital
The WACC of IFirma SA (IFI.WA) is 6.4%.
| Range | Selected | |
| Cost of equity | 7.8% - 10.0% | 8.9% |
| Tax rate | 20.0% - 20.6% | 20.3% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.9% - 7.0% | 6.4% |
| Category | Low | High |
| Long-term bond rate | 5.5% | 6.0% |
| Equity market risk premium | 6.3% | 7.3% |
| Adjusted beta | 0.36 | 0.47 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.8% | 10.0% |
| Tax rate | 20.0% | 20.6% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.9% | 7.0% |
| Selected WACC | 6.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| IFI.WA | IFirma SA | 1.17 | -0.07 | -0.03 |
| ARC.L | Arcontech Group PLC | 0.05 | -0.43 | -0.42 |
| B24.WA | Brand 24 SA | 0.04 | 0.11 | 0.11 |
| GOJXN.AS | GeoJunxion NV | 0.14 | -0.09 | -0.08 |
| IMG.WA | Optigis SA | 0 | 0.43 | 0.43 |
| INX.L | i-nexus Global PLC | 3.66 | -0.87 | -0.22 |
| M4B.WA | M4B SA | 0.14 | 0.15 | 0.14 |
| MBT.L | Mobile Tornado Group PLC | 2.28 | 0.7 | 0.25 |
| O5H.DE | Openlimit Holding AG | 15.42 | 0.25 | 0.02 |
| TIDE.L | Crimson Tide PLC | 0.16 | 0.69 | 0.61 |
| UFC.WA | Unified Factory SA | 7.05 | 0.2 | 0.03 |
| Low | High | |
| Unlevered beta | 0.02 | 0.11 |
| Relevered beta | 0.04 | 0.21 |
| Adjusted relevered beta | 0.36 | 0.47 |
IFI.WA'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 IFI.WA:
cost_of_equity (8.90%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.36) + 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.