INGR
Ingredion Inc
Price:  
137.16 
USD
Volume:  
394,931.00
United States | Food Products
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

INGR WACC - Weighted Average Cost of Capital

The WACC of Ingredion Inc (INGR) is 6.2%.

The Cost of Equity of Ingredion Inc (INGR) is 6.85%.
The Cost of Debt of Ingredion Inc (INGR) is 4.25%.

Range Selected
Cost of equity 5.90% - 7.80% 6.85%
Tax rate 27.80% - 29.90% 28.85%
Cost of debt 4.00% - 4.50% 4.25%
WACC 5.4% - 7.0% 6.2%
WACC

INGR WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.45 0.53
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.90% 7.80%
Tax rate 27.80% 29.90%
Debt/Equity ratio 0.21 0.21
Cost of debt 4.00% 4.50%
After-tax WACC 5.4% 7.0%
Selected WACC 6.2%

INGR'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 INGR:

cost_of_equity (6.85%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.45) + 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.