INKAT.AT WACC - Weighted Average Cost of Capital

The WACC of Intracom Constructions Technical and Steel Constructions SA (INKAT.AT) is 11.0%.

The Cost of Equity of Intracom Constructions Technical and Steel Constructions SA (INKAT.AT) is 10.35%.

The Cost of Debt of Intracom Constructions Technical and Steel Constructions SA (INKAT.AT) is 17.05%.

	Range	Selected
Cost of equity	9.30% - 11.40%	10.35%
Tax rate	3.70% - 28.40%	16.05%
Cost of debt	10.80% - 23.30%	17.05%
WACC	9.5% - 12.4%	11.0%

WACC

INKAT.AT WACC calculation

Category	Low	High

Long-term bond rate	3.3%	3.8%
Equity market risk premium	8.8%	9.8%
Adjusted beta	0.68	0.72

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.30%	11.40%

Tax rate	3.70%	28.40%
Debt/Equity ratio	0.26	0.26
Cost of debt	10.80%	23.30%

After-tax WACC	9.5%	12.4%


Selected WACC	11.0%

INKAT.AT'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 INKAT.AT:

cost_of_equity (10.35%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.68) + 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.