IPE.WA WACC - Weighted Average Cost of Capital

The WACC of Ipopema Securities SA (IPE.WA) is 6.3%.

The Cost of Equity of Ipopema Securities SA (IPE.WA) is 11.25%.

The Cost of Debt of Ipopema Securities SA (IPE.WA) is 5.30%.

	Range	Selected
Cost of equity	8.60% - 13.90%	11.25%
Tax rate	20.90% - 21.70%	21.30%
Cost of debt	4.00% - 6.60%	5.30%
WACC	4.8% - 7.8%	6.3%

WACC

IPE.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.49	1.01

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.60%	13.90%

Tax rate	20.90%	21.70%
Debt/Equity ratio	2.33	2.33
Cost of debt	4.00%	6.60%

After-tax WACC	4.8%	7.8%


Selected WACC	6.3%

IPE.WA'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 IPE.WA:

cost_of_equity (11.25%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.49) + 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.