The WACC of Inter Gamma Investment Company Ltd (INTR.TA) is 11.0%.
Range | Selected | |
Cost of equity | 9.7% - 12.7% | 11.2% |
Tax rate | 19.6% - 22.4% | 21% |
Cost of debt | 8.4% - 14.5% | 11.45% |
WACC | 9.4% - 12.6% | 11.0% |
Category | Low | High |
Long-term bond rate | 4.8% | 5.3% |
Equity market risk premium | 6.1% | 7.1% |
Adjusted beta | 0.79 | 0.97 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 9.7% | 12.7% |
Tax rate | 19.6% | 22.4% |
Debt/Equity ratio | 0.12 | 0.12 |
Cost of debt | 8.4% | 14.5% |
After-tax WACC | 9.4% | 12.6% |
Selected WACC | 11.0% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
INTR.TA | Inter Gamma Investment Company Ltd | 0.12 | 0.49 | 0.45 |
254120.KQ | Xavis Co Ltd | 0.07 | 1.45 | 1.37 |
317770.KQ | Suprema ID Inc | 0.21 | 1.33 | 1.14 |
5484.TW | EverFocus Electronics Corp | 0.09 | 0.96 | 0.9 |
7709.T | Kubotek Corp | 0.09 | 0.42 | 0.39 |
8286.HK | Shanxi Changcheng Microlight Equipment Co Ltd | 3.3 | 2.09 | 0.59 |
8511.HK | Zhicheng Technology Group Ltd | 1 | 0.97 | 0.55 |
ITRONIC.KL | Industronics Bhd | 0.05 | 0.68 | 0.66 |
LVHK.ME | Levenguk OAO | 0.12 | 0.1 | 0.09 |
MIKROMB.KL | Mikro Msc Bhd | 0.12 | 0.33 | 0.3 |
SMN.AX | Structural Monitoring Systems PLC | 0.22 | 1.18 | 1.01 |
Low | High | |
Unlevered beta | 0.55 | 0.66 |
Relevered beta | 0.69 | 0.96 |
Adjusted relevered beta | 0.79 | 0.97 |
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 INTR.TA:
cost_of_equity (11.20%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.79) + 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.