INP.WA WACC - Weighted Average Cost of Capital
The WACC of Inpro SA (INP.WA) is 7.6%.
| Range | Selected | |
| Cost of equity | 8.2% - 10.3% | 9.25% |
| Tax rate | 19.2% - 19.3% | 19.25% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 6.5% - 8.7% | 7.6% |
| Category | Low | High |
| Long-term bond rate | 5.5% | 6.0% |
| Equity market risk premium | 6.3% | 7.3% |
| Adjusted beta | 0.43 | 0.52 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.2% | 10.3% |
| Tax rate | 19.2% | 19.3% |
| Debt/Equity ratio | 0.53 | 0.53 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 6.5% | 8.7% |
| Selected WACC | 7.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| INP.WA | Inpro SA | 0.53 | 0.06 | 0.04 |
| EDI.WA | ED Invest SA | 0 | 0.25 | 0.25 |
| ETLN.L | Etalon Group PLC | 3.74 | 0.96 | 0.24 |
| HMI.WA | HM Inwest SA | 0.54 | -0.07 | -0.05 |
| I2D.WA | I2 Development SA | 1.47 | 0.49 | 0.23 |
| LKD.WA | Lokum Deweloper SA | 0.2 | -0.03 | -0.02 |
| MVP.WA | Marvipol Development SA | 1.77 | 0.42 | 0.17 |
| NUVA.DE | Noratis AG | 37.75 | -0.03 | 0 |
| PKG1T.TL | Pro Kapital Grupp AS | 0.77 | 0.84 | 0.52 |
| UBS.MC | Urbas Grupo Financiero SA | 4.08 | 0.62 | 0.14 |
| Low | High | |
| Unlevered beta | 0.1 | 0.19 |
| Relevered beta | 0.15 | 0.28 |
| Adjusted relevered beta | 0.43 | 0.52 |
INP.WA'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 INP.WA:
cost_of_equity (9.25%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.43) + 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.