IPWG
International Power Group Ltd
Price:  
0.00 
USD
Volume:  
141,920.00
United States | Commercial Services & Supplies
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IPWG WACC - Weighted Average Cost of Capital

The WACC of International Power Group Ltd (IPWG) is 5.6%.

The Cost of Equity of International Power Group Ltd (IPWG) is 180.60%.
The Cost of Debt of International Power Group Ltd (IPWG) is 5.00%.

Range Selected
Cost of equity 51.70% - 309.50% 180.60%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 5.00% - 5.00% 5.00%
WACC 4.2% - 6.9% 5.6%
WACC

IPWG WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 10.41 54.4
Additional risk adjustments 0.0% 0.5%
Cost of equity 51.70% 309.50%
Tax rate 26.20% 27.00%
Debt/Equity ratio 92.37 92.37
Cost of debt 5.00% 5.00%
After-tax WACC 4.2% 6.9%
Selected WACC 5.6%

IPWG'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 IPWG:

cost_of_equity (180.60%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (10.41) + 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.