IMCO.TA WACC - Weighted Average Cost of Capital

The WACC of Imco Industries Ltd (IMCO.TA) is 9.2%.

The Cost of Equity of Imco Industries Ltd (IMCO.TA) is 10.25%.

The Cost of Debt of Imco Industries Ltd (IMCO.TA) is 6.45%.

	Range	Selected
Cost of equity	9.00% - 11.50%	10.25%
Tax rate	19.10% - 25.90%	22.50%
Cost of debt	5.80% - 7.10%	6.45%
WACC	8.1% - 10.3%	9.2%

WACC

IMCO.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.67	0.79

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.00%	11.50%

Tax rate	19.10%	25.90%
Debt/Equity ratio	0.24	0.24
Cost of debt	5.80%	7.10%

After-tax WACC	8.1%	10.3%


Selected WACC	9.2%

IMCO.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 IMCO.TA:

cost_of_equity (10.25%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.67) + 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.