INH.DE
Indus Holding AG
Price:  
25.15 
EUR
Volume:  
30,447.00
Germany | Industrial Conglomerates
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INH.DE WACC - Weighted Average Cost of Capital

The WACC of Indus Holding AG (INH.DE) is 5.9%.

The Cost of Equity of Indus Holding AG (INH.DE) is 9.35%.
The Cost of Debt of Indus Holding AG (INH.DE) is 4.25%.

Range Selected
Cost of equity 7.90% - 10.80% 9.35%
Tax rate 37.80% - 41.20% 39.50%
Cost of debt 4.00% - 4.50% 4.25%
WACC 5.1% - 6.6% 5.9%
WACC

INH.DE WACC calculation

Category Low High
Long-term bond rate 2.8% 3.3%
Equity market risk premium 5.1% 6.1%
Adjusted beta 1 1.15
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.90% 10.80%
Tax rate 37.80% 41.20%
Debt/Equity ratio 1.06 1.06
Cost of debt 4.00% 4.50%
After-tax WACC 5.1% 6.6%
Selected WACC 5.9%

INH.DE'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 INH.DE:

cost_of_equity (9.35%) = risk_free_rate (3.05%) + equity_risk_premium (5.60%) * adjusted_beta (1) + 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.