INX.V WACC - Weighted Average Cost of Capital

The WACC of Intouch Insight Ltd (INX.V) is 9.0%.

The Cost of Equity of Intouch Insight Ltd (INX.V) is 9.55%.

The Cost of Debt of Intouch Insight Ltd (INX.V) is 10.15%.

	Range	Selected
Cost of equity	8.40% - 10.70%	9.55%
Tax rate	25.80% - 35.90%	30.85%
Cost of debt	5.10% - 15.20%	10.15%
WACC	7.5% - 10.5%	9.0%

WACC

INX.V WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.88	0.95

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.40%	10.70%

Tax rate	25.80%	35.90%
Debt/Equity ratio	0.24	0.24
Cost of debt	5.10%	15.20%

After-tax WACC	7.5%	10.5%


Selected WACC	9.0%

INX.V'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 INX.V:

cost_of_equity (9.55%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.88) + 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.