IGN.WA WACC - Weighted Average Cost of Capital

The WACC of Inno-Gene SA (IGN.WA) is 9.3%.

The Cost of Equity of Inno-Gene SA (IGN.WA) is 9.40%.

The Cost of Debt of Inno-Gene SA (IGN.WA) is 5.00%.

	Range	Selected
Cost of equity	8.30% - 10.50%	9.40%
Tax rate	15.30% - 21.40%	18.35%
Cost of debt	5.00% - 5.00%	5.00%
WACC	8.2% - 10.4%	9.3%

WACC

IGN.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.43	0.54

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.30%	10.50%

Tax rate	15.30%	21.40%
Debt/Equity ratio	0.02	0.02
Cost of debt	5.00%	5.00%

After-tax WACC	8.2%	10.4%


Selected WACC	9.3%

IGN.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 IGN.WA:

cost_of_equity (9.40%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.43) + 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.