IFX.V WACC - Weighted Average Cost of Capital
The WACC of Imaflex Inc (IFX.V) is 8.8%.
| Range | Selected | |
| Cost of equity | 7.7% - 11.6% | 9.65% |
| Tax rate | 16.3% - 19.5% | 17.9% |
| Cost of debt | 4.8% - 5.7% | 5.25% |
| WACC | 7.1% - 10.5% | 8.8% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.75 | 1.1 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.7% | 11.6% |
| Tax rate | 16.3% | 19.5% |
| Debt/Equity ratio | 0.18 | 0.18 |
| Cost of debt | 4.8% | 5.7% |
| After-tax WACC | 7.1% | 10.5% |
| Selected WACC | 8.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| IFX.V | Imaflex Inc | 0.16 | -0.19 | -0.17 |
| ACGX | Alliance Creative Group Inc | 97.32 | -1.55 | -0.02 |
| CAS.TO | Cascades Inc | 2.44 | 1.05 | 0.35 |
| IDND | International Dispensing Corp | 3.42 | 1.59 | 0.42 |
| SEE | Sealed Air Corp | 0.94 | 0.97 | 0.55 |
| UFPT | UFP Technologies Inc | 0.11 | 1.39 | 1.28 |
| BRKSN.IS | Berkosan Yalitim ve Tecrit Maddeleri Uretim ve Ticaret AS | 0.18 | 1.18 | 1.02 |
| KAPLM.IS | Kaplamin Ambalaj Sanayi ve Ticaret AS | 0.04 | 1.06 | 1.03 |
| OLMIP.IS | Olmuksan International Paper Ambalaj Sanayi ve Ticaret AS | 0.08 | 1.06 | 0.99 |
| TIRE.IS | Mondi Tire Kutsan Kagit ve Ambalaj Sanayi AS | 0.15 | 1.3 | 1.16 |
| Low | High | |
| Unlevered beta | 0.49 | 1 |
| Relevered beta | 0.63 | 1.15 |
| Adjusted relevered beta | 0.75 | 1.1 |
IFX.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 IFX.V:
cost_of_equity (9.65%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.75) + 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.