IFOS.V WACC - Weighted Average Cost of Capital
The WACC of Itafos (IFOS.V) is 7.6%.
| Range | Selected | |
| Cost of equity | 7.5% - 9.9% | 8.7% |
| Tax rate | 20.6% - 23.9% | 22.25% |
| Cost of debt | 4.5% - 7.5% | 6% |
| WACC | 6.5% - 8.8% | 7.6% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.72 | 0.82 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.5% | 9.9% |
| Tax rate | 20.6% | 23.9% |
| Debt/Equity ratio | 0.36 | 0.36 |
| Cost of debt | 4.5% | 7.5% |
| After-tax WACC | 6.5% | 8.8% |
| Selected WACC | 7.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| IFOS.V | Itafos | 0.36 | 0.03 | 0.03 |
| AGFS | AgroFresh Solutions Inc | 1.6 | 1.06 | 0.47 |
| AVD | American Vanguard Corp | 1.17 | 0.89 | 0.47 |
| CGA | China Green Agriculture Inc | 0.62 | -0.03 | -0.02 |
| HWKN | Hawkins Inc | 0.06 | 0.74 | 0.71 |
| IPI | Intrepid Potash Inc | 0.01 | 1.03 | 1.02 |
| LXU | LSB Industries Inc | 0.95 | 1.4 | 0.81 |
| MBII | Marrone Bio Innovations Inc | 0.18 | 0.36 | 0.32 |
| MOS | Mosaic Co | 0.38 | 1.14 | 0.88 |
| UAN | CVR Partners LP | 0.66 | 0.65 | 0.43 |
| Low | High | |
| Unlevered beta | 0.45 | 0.57 |
| Relevered beta | 0.58 | 0.73 |
| Adjusted relevered beta | 0.72 | 0.82 |
IFOS.V'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 IFOS.V:
cost_of_equity (8.70%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.72) + 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.