IMC.WA WACC - Weighted Average Cost of Capital

The WACC of IMC SA (IMC.WA) is 10.2%.

The Cost of Equity of IMC SA (IMC.WA) is 12.45%.

The Cost of Debt of IMC SA (IMC.WA) is 5.50%.

	Range	Selected
Cost of equity	10.90% - 14.00%	12.45%
Tax rate	1.40% - 1.50%	1.45%
Cost of debt	4.00% - 7.00%	5.50%
WACC	8.7% - 11.8%	10.2%

WACC

IMC.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.85	1.01

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.90%	14.00%

Tax rate	1.40%	1.50%
Debt/Equity ratio	0.45	0.45
Cost of debt	4.00%	7.00%

After-tax WACC	8.7%	11.8%


Selected WACC	10.2%

IMC.WA'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 IMC.WA:

cost_of_equity (12.45%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.85) + 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.