ILX.TA WACC - Weighted Average Cost of Capital

The WACC of Ilex Medical Ltd (ILX.TA) is 8.0%.

The Cost of Equity of Ilex Medical Ltd (ILX.TA) is 8.40%.

The Cost of Debt of Ilex Medical Ltd (ILX.TA) is 4.70%.

	Range	Selected
Cost of equity	7.60% - 9.20%	8.40%
Tax rate	24.10% - 25.10%	24.60%
Cost of debt	4.00% - 5.40%	4.70%
WACC	7.2% - 8.8%	8.0%

WACC

ILX.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.44	0.47

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.60%	9.20%

Tax rate	24.10%	25.10%
Debt/Equity ratio	0.07	0.07
Cost of debt	4.00%	5.40%

After-tax WACC	7.2%	8.8%


Selected WACC	8.0%

ILX.TA'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 ILX.TA:

cost_of_equity (8.40%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.44) + 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.