ING.WA WACC - Weighted Average Cost of Capital

The WACC of ING Bank Slaski SA (ING.WA) is 11.3%.

The Cost of Equity of ING Bank Slaski SA (ING.WA) is 11.80%.

The Cost of Debt of ING Bank Slaski SA (ING.WA) is 5.00%.

	Range	Selected
Cost of equity	9.50% - 14.10%	11.80%
Tax rate	23.00% - 25.50%	24.25%
Cost of debt	5.00% - 5.00%	5.00%
WACC	9.2% - 13.5%	11.3%

WACC

ING.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.63	1.03

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.50%	14.10%

Tax rate	23.00%	25.50%
Debt/Equity ratio	0.06	0.06
Cost of debt	5.00%	5.00%

After-tax WACC	9.2%	13.5%


Selected WACC	11.3%

ING.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 ING.WA:

cost_of_equity (11.80%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.63) + 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.