IGLDF WACC - Weighted Average Cost of Capital
The WACC of Internet Gold Golden Lines Ltd (IGLDF) is 3.6%.
| Range | Selected | |
| Cost of equity | 17.9% - 58.7% | 38.3% |
| Tax rate | 30.1% - 40.4% | 35.25% |
| Cost of debt | 4.0% - 4.8% | 4.4% |
| WACC | 3.1% - 4.0% | 3.6% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 3.06 | 9.61 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 17.9% | 58.7% |
| Tax rate | 30.1% | 40.4% |
| Debt/Equity ratio | 46.13 | 46.13 |
| Cost of debt | 4.0% | 4.8% |
| After-tax WACC | 3.1% | 4.0% |
| Selected WACC | 3.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| IGLDF | Internet Gold Golden Lines Ltd | 46.13 | 0.51 | 0.02 |
| ALSK | Alaska Communications Systems Group Inc | 0.91 | 1.48 | 0.92 |
| ATNI | ATN International Inc | 2.77 | 0.34 | 0.12 |
| CBB | Cincinnati Bell Inc | 2.5 | 0.36 | 0.14 |
| CNSL | Consolidated Communications Holdings Inc | 3.85 | -0.01 | 0 |
| LICT | LICT Corp | 0.25 | -0.06 | -0.05 |
| ORBC | ORBCOMM Inc | 0.24 | 1.57 | 1.35 |
| UPCO.CN | Upco International Inc | 0.05 | 1.17 | 1.14 |
| EKT.MC | Euskaltel SA | 0.75 | 0.68 | 0.46 |
| TEL1L.VS | Telia Lietuva AB | 0.12 | 0.46 | 0.43 |
| Low | High | |
| Unlevered beta | 0.13 | 0.44 |
| Relevered beta | 4.07 | 13.85 |
| Adjusted relevered beta | 3.06 | 9.61 |
IGLDF'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 IGLDF:
cost_of_equity (38.30%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (3.06) + 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.