INHC.L WACC - Weighted Average Cost of Capital
The WACC of Induction Healthcare Group PLC (INHC.L) is 7.4%.
| Range | Selected | |
| Cost of equity | 5.8% - 9.0% | 7.4% |
| Tax rate | 5.6% - 8.4% | 7% |
| Cost of debt | 7.0% - 7.0% | 7% |
| WACC | 5.8% - 8.9% | 7.4% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.31 | 0.57 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.8% | 9.0% |
| Tax rate | 5.6% | 8.4% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 7.0% | 7.0% |
| After-tax WACC | 5.8% | 8.9% |
| Selected WACC | 7.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| INHC.L | Induction Healthcare Group PLC | 0.01 | -0.77 | -0.77 |
| ALMDT.PA | Median Technologies SA | 0.44 | -0.45 | -0.32 |
| COG.L | Cambridge Cognition Holdings PLC | 0 | 1.02 | 1.02 |
| FRISQ.ST | Frisq Holding AB (publ) | 0.14 | 0.73 | 0.65 |
| MDA.WA | Medapp SA | 0.01 | 0.62 | 0.61 |
| NXU.DE | Nexus AG | 0.02 | 0.19 | 0.18 |
| SDT.PA | Visiodent SA | 0.19 | -0.21 | -0.18 |
| SENS.L | Sensyne Health PLC | 1.63 | 0.16 | 0.06 |
| SNT.WA | Synektik SA | 0.01 | 0.63 | 0.62 |
| MITI | Mitesco Inc | 0.43 | -1.06 | -0.76 |
| Low | High | |
| Unlevered beta | -0.03 | 0.35 |
| Relevered beta | -0.03 | 0.36 |
| Adjusted relevered beta | 0.31 | 0.57 |
INHC.L'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 INHC.L:
cost_of_equity (7.40%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.31) + 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.