IR5B.IR WACC - Weighted Average Cost of Capital
The WACC of Irish Continental Group PLC (IR5B.IR) is 6.4%.
| Range | Selected | |
| Cost of equity | 5.8% - 8.0% | 6.9% |
| Tax rate | 4.1% - 4.8% | 4.45% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.5% - 7.3% | 6.4% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.52 | 0.61 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.8% | 8.0% |
| Tax rate | 4.1% | 4.8% |
| Debt/Equity ratio | 0.22 | 0.22 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.5% | 7.3% |
| Selected WACC | 6.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| IR5B.IR | Irish Continental Group PLC | 0.22 | 1.01 | 0.83 |
| 2020.OL | 2020 Bulkers Ltd | 0.39 | 1.27 | 0.93 |
| ANEK.AT | Anonymous Shipping Company of Crete SA | 4.6 | 0.36 | 0.07 |
| ATA.WA | ATC Cargo SA | 0.03 | 0.07 | 0.06 |
| ATTICA.AT | Attica Holdings SA | 1.19 | 0.77 | 0.36 |
| CKN.L | Clarkson PLC | 0.04 | 0.85 | 0.82 |
| FJORD.OL | Fjord1 ASA | 1.16 | 0.56 | 0.26 |
| JIN.OL | Jinhui Shipping and Transportation Ltd | 1.94 | 0.57 | 0.2 |
| OTS.WA | OT Logistics SA | 2.18 | 0.34 | 0.11 |
| TAL1T.TL | Tallink Grupp AS | 1.2 | 0.74 | 0.34 |
| Low | High | |
| Unlevered beta | 0.24 | 0.35 |
| Relevered beta | 0.28 | 0.42 |
| Adjusted relevered beta | 0.52 | 0.61 |
IR5B.IR'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 IR5B.IR:
cost_of_equity (6.90%) = risk_free_rate (2.95%) + equity_risk_premium (6.50%) * adjusted_beta (0.52) + 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.