The WACC of InterContinental Hotels Group PLC (IHG.L) is 7.4%.
Range | Selected | |
Cost of equity | 7.40% - 9.30% | 8.35% |
Tax rate | 26.30% - 28.00% | 27.15% |
Cost of debt | 4.00% - 5.10% | 4.55% |
WACC | 6.6% - 8.3% | 7.4% |
Category | Low | High |
Long-term bond rate | 4.0% | 4.5% |
Equity market risk premium | 6.0% | 7.0% |
Adjusted beta | 0.57 | 0.62 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 7.40% | 9.30% |
Tax rate | 26.30% | 28.00% |
Debt/Equity ratio | 0.21 | 0.21 |
Cost of debt | 4.00% | 5.10% |
After-tax WACC | 6.6% | 8.3% |
Selected WACC | 7.4% | |