ING.AX WACC - Weighted Average Cost of Capital

The WACC of Inghams Group Ltd (ING.AX) is 6.1%.

The Cost of Equity of Inghams Group Ltd (ING.AX) is 11.10%.

The Cost of Debt of Inghams Group Ltd (ING.AX) is 5.00%.

	Range	Selected
Cost of equity	8.30% - 13.90%	11.10%
Tax rate	23.20% - 27.40%	25.30%
Cost of debt	5.00% - 5.00%	5.00%
WACC	5.3% - 7.0%	6.1%

WACC

ING.AX WACC calculation

Category	Low	High

Long-term bond rate	4.0%	4.5%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.84	1.45

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.30%	13.90%

Tax rate	23.20%	27.40%
Debt/Equity ratio	2.08	2.08
Cost of debt	5.00%	5.00%

After-tax WACC	5.3%	7.0%


Selected WACC	6.1%

ING.AX'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 ING.AX:

cost_of_equity (11.10%) = risk_free_rate (4.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.84) + 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.