INRM.TA WACC - Weighted Average Cost of Capital

The WACC of Inrom Construction Industries Ltd (INRM.TA) is 10.0%.

The Cost of Equity of Inrom Construction Industries Ltd (INRM.TA) is 10.70%.

The Cost of Debt of Inrom Construction Industries Ltd (INRM.TA) is 5.15%.

	Range	Selected
Cost of equity	9.30% - 12.10%	10.70%
Tax rate	24.30% - 24.40%	24.35%
Cost of debt	4.50% - 5.80%	5.15%
WACC	8.7% - 11.3%	10.0%

WACC

INRM.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.72	0.88

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.30%	12.10%

Tax rate	24.30%	24.40%
Debt/Equity ratio	0.11	0.11
Cost of debt	4.50%	5.80%

After-tax WACC	8.7%	11.3%


Selected WACC	10.0%

INRM.TA'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 INRM.TA:

cost_of_equity (10.70%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.72) + 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.