INR1L.VS WACC - Weighted Average Cost of Capital
The WACC of INVL Baltic Real Estate SUTNTIB (INR1L.VS) is 6.6%.
| Range | Selected | |
| Cost of equity | 6.6% - 8.7% | 7.65% |
| Tax rate | 0.5% - 0.8% | 0.65% |
| Cost of debt | 5.0% - 5.7% | 5.35% |
| WACC | 5.9% - 7.4% | 6.6% |
| Category | Low | High |
| Long-term bond rate | 3.4% | 3.9% |
| Equity market risk premium | 6.3% | 7.3% |
| Adjusted beta | 0.5 | 0.58 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.6% | 8.7% |
| Tax rate | 0.5% | 0.8% |
| Debt/Equity ratio | 0.77 | 0.77 |
| Cost of debt | 5.0% | 5.7% |
| After-tax WACC | 5.9% | 7.4% |
| Selected WACC | 6.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| INR1L.VS | INVL Baltic Real Estate SUTNTIB | 0.77 | 0.81 | 0.46 |
| ARON.SW | Arundel AG | 87.84 | 2.06 | 0.02 |
| BANI.BR | Banimmo SA | 2.56 | 0.18 | 0.05 |
| CBB.MI | CleanBnB SpA | 0.03 | 0.3 | 0.29 |
| CIA.MI | Compagnia Immobiliare Azionaria SpA | 1.11 | 0.51 | 0.24 |
| DKE.L | Dukemount Capital PLC | 2.51 | 2.07 | 0.59 |
| FED.CO | Fast Ejendom Danmark A/S | 2.12 | 0.22 | 0.07 |
| INVEST.HE | Investors House Oyj | 1.13 | 0.34 | 0.16 |
| OVARO.HE | Ovaro Kiinteistosijoitus Oyj | 0.45 | 0.28 | 0.19 |
| SMWN.DE | SM Wirtschaftsberatungs AG | 0.06 | 0.13 | 0.13 |
| Low | High | |
| Unlevered beta | 0.15 | 0.21 |
| Relevered beta | 0.25 | 0.37 |
| Adjusted relevered beta | 0.5 | 0.58 |
INR1L.VS'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 INR1L.VS:
cost_of_equity (7.65%) = risk_free_rate (3.65%) + equity_risk_premium (6.80%) * adjusted_beta (0.5) + 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.