INL.L WACC - Weighted Average Cost of Capital
The WACC of Inland Homes PLC (INL.L) is 5.2%.
| Range | Selected | |
| Cost of equity | 7.0% - 18.8% | 12.9% |
| Tax rate | 19.9% - 23.0% | 21.45% |
| Cost of debt | 5.5% - 5.5% | 5.5% |
| WACC | 4.7% - 5.8% | 5.2% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.51 | 1.98 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.0% | 18.8% |
| Tax rate | 19.9% | 23.0% |
| Debt/Equity ratio | 8.15 | 8.15 |
| Cost of debt | 5.5% | 5.5% |
| After-tax WACC | 4.7% | 5.8% |
| Selected WACC | 5.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| INL.L | Inland Homes PLC | 8.15 | 2.66 | 0.35 |
| ALREA.PA | Realites SA | 73.39 | -1.49 | -0.03 |
| INP.WA | Inpro SA | 0.53 | 0.07 | 0.05 |
| JWC.WA | JW Construction Holding SA | 0.94 | 0.03 | 0.02 |
| KEKR.AT | Kekrops SA | 0.23 | 0.99 | 0.84 |
| LKD.WA | Lokum Deweloper SA | 0.2 | 0.01 | 0.01 |
| MVP.WA | Marvipol Development SA | 1.76 | 0.44 | 0.18 |
| NUVA.DE | Noratis AG | 35.37 | -0.03 | 0 |
| SMP.L | St Modwen Properties PLC | 0.26 | 0.95 | 0.78 |
| TURGG.IS | Turker Proje Gayrimenkul Ve Yatirim Gelistirme AS | 0 | 0.55 | 0.55 |
| WJG.L | Watkin Jones PLC | 0.58 | 2.01 | 1.37 |
| Low | High | |
| Unlevered beta | 0.05 | 0.35 |
| Relevered beta | 0.27 | 2.46 |
| Adjusted relevered beta | 0.51 | 1.98 |
INL.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 INL.L:
cost_of_equity (12.90%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.51) + 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.