IPCO.ST WACC - Weighted Average Cost of Capital

The WACC of International Petroleum Corp (IPCO.ST) is 8.4%.

The Cost of Equity of International Petroleum Corp (IPCO.ST) is 9.20%.

The Cost of Debt of International Petroleum Corp (IPCO.ST) is 5.90%.

	Range	Selected
Cost of equity	7.90% - 10.50%	9.20%
Tax rate	24.40% - 25.70%	25.05%
Cost of debt	4.70% - 7.10%	5.90%
WACC	7.2% - 9.6%	8.4%

WACC

IPCO.ST WACC calculation

Category	Low	High

Long-term bond rate	2.5%	3.0%
Equity market risk premium	5.1%	6.1%
Adjusted beta	1.05	1.15

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.90%	10.50%

Tax rate	24.40%	25.70%
Debt/Equity ratio	0.2	0.2
Cost of debt	4.70%	7.10%

After-tax WACC	7.2%	9.6%


Selected WACC	8.4%

IPCO.ST'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 IPCO.ST:

cost_of_equity (9.20%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (1.05) + 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.