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 11.25%.

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

	Range	Selected
Cost of equity	9.50% - 13.00%	11.25%
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	1.36	1.55

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.50%	13.00%

Tax rate	28.40%	29.60%
Debt/Equity ratio	2.74	2.74
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 (11.25%) = risk_free_rate (2.85%) + equity_risk_premium (5.60%) * adjusted_beta (1.36) + 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.