IHGS.QA WACC - Weighted Average Cost of Capital
The WACC of Inma Holding Co (IHGS.QA) is 9.4%.
| Range | Selected | |
| Cost of equity | 8.6% - 11.6% | 10.1% |
| Tax rate | 10.0% - 10.0% | 10% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.1% - 10.8% | 9.4% |
| Category | Low | High |
| Long-term bond rate | 5.0% | 5.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.6 | 0.8 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.6% | 11.6% |
| Tax rate | 10.0% | 10.0% |
| Debt/Equity ratio | 0.14 | 0.14 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.1% | 10.8% |
| Selected WACC | 9.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| IHGS.QA | Inma Holding Co | 0.14 | 0.98 | 0.88 |
| 7360.T | Ondeck Co Ltd | 0.02 | 0.5 | 0.49 |
| 821.HK | Value Convergence Holdings Ltd | 0.51 | 1.35 | 0.92 |
| 8617.T | Kosei Securities Co Ltd | 0.1 | 0.91 | 0.83 |
| AEC.BK | AEC Securities PCL | 0 | 0.86 | 0.85 |
| ALBK.ME | Best Efforts Bank PAO | 0.07 | -0.12 | -0.11 |
| ORS.VN | Tien Phong Securities Corporation | 2.28 | 1.33 | 0.44 |
| RELI.JK | Reliance Sekuritas Indonesia Tbk PT | 0 | 0.24 | 0.24 |
| SWF.AX | Selfwealth Ltd | 0 | -0.38 | -0.38 |
| YULE.JK | Yulie Sekuritas Indonesia Tbk PT | 0 | 0.17 | 0.17 |
| Low | High | |
| Unlevered beta | 0.36 | 0.63 |
| Relevered beta | 0.4 | 0.7 |
| Adjusted relevered beta | 0.6 | 0.8 |
IHGS.QA'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 IHGS.QA:
cost_of_equity (10.10%) = risk_free_rate (5.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.6) + 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.