IMCD.AS WACC - Weighted Average Cost of Capital

The WACC of IMCD NV (IMCD.AS) is 6.7%.

The Cost of Equity of IMCD NV (IMCD.AS) is 7.55%.

The Cost of Debt of IMCD NV (IMCD.AS) is 4.25%.

	Range	Selected
Cost of equity	6.10% - 9.00%	7.55%
Tax rate	27.00% - 27.20%	27.10%
Cost of debt	4.00% - 4.50%	4.25%
WACC	5.5% - 7.8%	6.7%

WACC

IMCD.AS WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.69	0.89

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.10%	9.00%

Tax rate	27.00%	27.20%
Debt/Equity ratio	0.24	0.24
Cost of debt	4.00%	4.50%

After-tax WACC	5.5%	7.8%


Selected WACC	6.7%

IMCD.AS'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 IMCD.AS:

cost_of_equity (7.55%) = risk_free_rate (2.85%) + equity_risk_premium (5.60%) * adjusted_beta (0.69) + 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.