INF.WA WACC - Weighted Average Cost of Capital

The WACC of Interferie SA (INF.WA) is 12.0%.

The Cost of Equity of Interferie SA (INF.WA) is 12.55%.

The Cost of Debt of Interferie SA (INF.WA) is 12.85%.

	Range	Selected
Cost of equity	11.00% - 14.10%	12.55%
Tax rate	18.30% - 18.90%	18.60%
Cost of debt	9.00% - 16.70%	12.85%
WACC	10.0% - 13.9%	12.0%

WACC

INF.WA WACC calculation

Category	Low	High

Long-term bond rate	7.2%	7.7%
Equity market risk premium	5.6%	6.6%
Adjusted beta	0.68	0.89

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.00%	14.10%

Tax rate	18.30%	18.90%
Debt/Equity ratio	0.37	0.37
Cost of debt	9.00%	16.70%

After-tax WACC	10.0%	13.9%


Selected WACC	12.0%

INF.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 INF.WA:

cost_of_equity (12.55%) = risk_free_rate (7.45%) + equity_risk_premium (6.10%) * adjusted_beta (0.68) + 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.