IGSC WACC - Weighted Average Cost of Capital
The WACC of IGS Capital Group Ltd (IGSC) is 5.8%.
| Range | Selected | |
| Cost of equity | 6.5% - 9.5% | 8% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.1% - 6.6% | 5.8% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.57 | 0.82 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.5% | 9.5% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.1% | 6.6% |
| Selected WACC | 5.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| IGSC | IGS Capital Group Ltd | 1.12 | -55.77 | -30.74 |
| ARAO | AuraSource Inc | 4538.91 | -0.28 | 0 |
| BAC.CN | Bactech Environmental Corp | 0.17 | -1.22 | -1.09 |
| BHTG | BioHiTech Global Inc | 1.59 | 1.13 | 0.52 |
| BNET | Bion Environmental Technologies Inc | 0.23 | 1.4 | 1.2 |
| BQE.V | BQE Water Inc | 0.03 | 0.35 | 0.34 |
| CREG | China Recycling Energy Corp | 0.81 | 1.38 | 0.87 |
| ECM.V | Ecolomondo Corp | 1.17 | 1.55 | 0.84 |
| EWS.V | Environmental Waste International Inc | 2.54 | 1.03 | 0.36 |
| JAN | Janone Inc | 0.03 | -1.07 | -1.05 |
| NUGL | NUGL Inc | 0.02 | -0.56 | -0.55 |
| Low | High | |
| Unlevered beta | 0 | 0.36 |
| Relevered beta | 0.36 | 0.73 |
| Adjusted relevered beta | 0.57 | 0.82 |
IGSC'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 IGSC:
cost_of_equity (8.00%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.57) + 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.