IHG.L
InterContinental Hotels Group PLC
Price:  
8,574.00 
GBP
Volume:  
1,943,331.00
United Kingdom | Hotels, Restaurants & Leisure
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IHG.L WACC - Weighted Average Cost of Capital

The WACC of InterContinental Hotels Group PLC (IHG.L) is 7.4%.

The Cost of Equity of InterContinental Hotels Group PLC (IHG.L) is 8.35%.
The Cost of Debt of InterContinental Hotels Group PLC (IHG.L) is 4.55%.

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%
WACC

IHG.L WACC calculation

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%