INFO
IHS Markit Ltd
Price:  
22.15 
USD
Volume:  
589
United Kingdom | Professional Services

INFO WACC - Weighted Average Cost of Capital

The WACC of IHS Markit Ltd (INFO) is 8.0%.

The Cost of Equity of IHS Markit Ltd (INFO) is 8.4%.
The Cost of Debt of IHS Markit Ltd (INFO) is 4.45%.

RangeSelected
Cost of equity7.3% - 9.5%8.4%
Tax rate8.5% - 11.4%9.95%
Cost of debt4.4% - 4.5%4.45%
WACC7.0% - 8.9%8.0%
WACC

INFO WACC calculation

CategoryLowHigh
Long-term bond rate3.2%3.7%
Equity market risk premium4.2%5.2%
Adjusted beta0.981.01
Additional risk adjustments0.0%0.5%
Cost of equity7.3%9.5%
Tax rate8.5%11.4%
Debt/Equity ratio
0.110.11
Cost of debt4.4%4.5%
After-tax WACC7.0%8.9%
Selected WACC8.0%

INFO'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 INFO:

cost_of_equity (8.40%) = risk_free_rate (3.45%) + equity_risk_premium (4.70%) * adjusted_beta (0.98) + 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.