INLOT.AT WACC - Weighted Average Cost of Capital

The WACC of Intralot Integrated Lottery Systems & Services SA (INLOT.AT) is 7.8%.

The Cost of Equity of Intralot Integrated Lottery Systems & Services SA (INLOT.AT) is 8.15%.

The Cost of Debt of Intralot Integrated Lottery Systems & Services SA (INLOT.AT) is 7.95%.

	Range	Selected
Cost of equity	6.50% - 9.80%	8.15%
Tax rate	10.30% - 21.60%	15.95%
Cost of debt	7.30% - 8.60%	7.95%
WACC	6.5% - 9.1%	7.8%

WACC

INLOT.AT WACC calculation

Category	Low	High

Long-term bond rate	3.3%	3.8%
Equity market risk premium	8.8%	9.8%
Adjusted beta	0.36	0.56

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.50%	9.80%

Tax rate	10.30%	21.60%
Debt/Equity ratio	0.27	0.27
Cost of debt	7.30%	8.60%

After-tax WACC	6.5%	9.1%


Selected WACC	7.8%

INLOT.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 INLOT.AT:

cost_of_equity (8.15%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.36) + 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.