INGA.AS
ING Groep NV
Price:  
17.77 
EUR
Volume:  
10,724,943.00
Netherlands | Banks
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INGA.AS WACC - Weighted Average Cost of Capital

The WACC of ING Groep NV (INGA.AS) is 5.6%.

The Cost of Equity of ING Groep NV (INGA.AS) is 11.30%.
The Cost of Debt of ING Groep NV (INGA.AS) is 5.00%.

Range Selected
Cost of equity 9.60% - 13.00% 11.30%
Tax rate 28.40% - 29.60% 29.00%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.2% - 6.0% 5.6%
WACC

INGA.AS WACC calculation

Category Low High
Long-term bond rate 2.6% 3.1%
Equity market risk premium 5.1% 6.1%
Adjusted beta 1.38 1.54
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.60% 13.00%
Tax rate 28.40% 29.60%
Debt/Equity ratio 2.81 2.81
Cost of debt 5.00% 5.00%
After-tax WACC 5.2% 6.0%
Selected WACC 5.6%

INGA.AS'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 INGA.AS:

cost_of_equity (11.30%) = risk_free_rate (2.85%) + equity_risk_premium (5.60%) * adjusted_beta (1.38) + 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.