IOM.L
iomart group PLC
Price:  
19.90 
GBP
Volume:  
219,815.00
United Kingdom | IT Services
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IOM.L WACC - Weighted Average Cost of Capital

The WACC of iomart group PLC (IOM.L) is 5.8%.

The Cost of Equity of iomart group PLC (IOM.L) is 11.15%.
The Cost of Debt of iomart group PLC (IOM.L) is 5.85%.

Range Selected
Cost of equity 9.20% - 13.10% 11.15%
Tax rate 18.10% - 20.20% 19.15%
Cost of debt 4.70% - 7.00% 5.85%
WACC 4.7% - 6.8% 5.8%
WACC

IOM.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.88 1.16
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.20% 13.10%
Tax rate 18.10% 20.20%
Debt/Equity ratio 5.02 5.02
Cost of debt 4.70% 7.00%
After-tax WACC 4.7% 6.8%
Selected WACC 5.8%

IOM.L'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 IOM.L:

cost_of_equity (11.15%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * 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.