IGN1L.VS WACC - Weighted Average Cost of Capital

The WACC of Ignitis Grupe AB (IGN1L.VS) is 7.4%.

The Cost of Equity of Ignitis Grupe AB (IGN1L.VS) is 11.85%.

The Cost of Debt of Ignitis Grupe AB (IGN1L.VS) is 4.25%.

	Range	Selected
Cost of equity	9.90% - 13.80%	11.85%
Tax rate	10.10% - 11.20%	10.65%
Cost of debt	4.00% - 4.50%	4.25%
WACC	6.4% - 8.4%	7.4%

WACC

IGN1L.VS WACC calculation

Category	Low	High

Long-term bond rate	3.4%	3.9%
Equity market risk premium	6.3%	7.3%
Adjusted beta	1.01	1.28

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.90%	13.80%

Tax rate	10.10%	11.20%
Debt/Equity ratio	1.24	1.24
Cost of debt	4.00%	4.50%

After-tax WACC	6.4%	8.4%


Selected WACC	7.4%

IGN1L.VS'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 IGN1L.VS:

cost_of_equity (11.85%) = risk_free_rate (3.65%) + equity_risk_premium (6.80%) * adjusted_beta (1.01) + 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.