INGA.AS WACC - Weighted Average Cost of Capital

The WACC of ING Groep NV (INGA.AS) is 5.5%.

The Cost of Equity of ING Groep NV (INGA.AS) is 10.20%.

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

	Range	Selected
Cost of equity	8.80% - 11.60%	10.20%
Tax rate	28.40% - 29.60%	29.00%
Cost of debt	5.00% - 5.00%	5.00%
WACC	5.1% - 5.8%	5.5%

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	1.22	1.32

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.80%	11.60%

Tax rate	28.40%	29.60%
Debt/Equity ratio	2.47	2.47
Cost of debt	5.00%	5.00%

After-tax WACC	5.1%	5.8%


Selected WACC	5.5%

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 (10.20%) = risk_free_rate (2.85%) + equity_risk_premium (5.60%) * adjusted_beta (1.22) + 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.