IGPG WACC - Weighted Average Cost of Capital
The WACC of Ignis Petroleum Group Inc (IGPG) is 3.7%.
| Range | Selected | |
| Cost of equity | 17.4% - 1671.9% | 844.65% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 3.7% - 3.8% | 3.7% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 2.94 | 297.69 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 17.4% | 1671.9% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 11370.81 | 11370.81 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 3.7% | 3.8% |
| Selected WACC | 3.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| IGPG | Ignis Petroleum Group Inc | 11370.81 | 24.99 | 0 |
| AMAZ | Amazing Energy Oil and Gas Co | 621.81 | 1.07 | 0 |
| DBRM | Daybreak Oil and Gas Inc | 36.67 | 1.84 | 0.07 |
| FDEI | Fidelis Energy Inc | 42115.04 | 0 | 0 |
| MCS.V | McChip Resources Inc | 0.51 | 0.8 | 0.59 |
| PUL.V | Pulse Oil Corp | 0.02 | 1.73 | 1.71 |
| SOIS | Striker Oil & Gas Inc | 0.62 | 0 | 0 |
| STTX | Stratex Oil & Gas Holdings Inc | 50.85 | -0.84 | -0.02 |
| TXHE | Texhoma Energy Inc | 34.27 | 0 | 0 |
| WCE.V | WesCan Energy Corp | 1.13 | 1.13 | 0.62 |
| Low | High | |
| Unlevered beta | 0 | 0.03 |
| Relevered beta | 3.9 | 443.82 |
| Adjusted relevered beta | 2.94 | 297.69 |
IGPG'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 IGPG:
cost_of_equity (844.65%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (2.94) + 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.