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	11.0%	14.1%

Tax rate	18.3%	18.9%
Debt/Equity ratio	0.37	0.37
Cost of debt	9.0%	16.7%

After-tax WACC	10.0%	13.9%


Selected WACC	12.0%

INF.WA WACC - Detailed calculations of Beta

		Debt/Equity		Unlevered
Peers	Company Name	ratio	Beta	beta

INF.WA	Interferie SA	0.37	0.58	0.44
ALLHB.PA	Les Hotels Baverez SA	0.09	-0.27	-0.25
AYCES.IS	Altin Yunus Cesme Turistik Tesisler AS	0.01	0.72	0.71
GPA.LS	Imobiliaria Construtora Grao Para SA	0.83	-0.06	-0.04
HDP.PA	Les Hotels de Paris SA	11.02	0.17	0.02
IGV.MI	I Grandi Viaggi SpA	0.07	0.51	0.49
MARTI.IS	Marti Otel Isletmeleri AS	4.84	1.23	0.25
MIN.L	Minoan Group PLC	1.76	2.24	0.92
OLYMP.AT	Technical Olympic SA	0.14	0.62	0.56
ULAS.IS	Ulaslar Turizm Yatirimlari ve Dayanikli Tuketim Mallari Ticaret Pazarlama AS	0.01	1.43	1.42

	Low	High

Unlevered beta	0.37	0.51
Relevered beta	0.52	0.84
Adjusted relevered beta	0.68	0.89

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.