IRCP.BK WACC - Weighted Average Cost of Capital

The WACC of International Research Corporation PCL (IRCP.BK) is 6.9%.

The Cost of Equity of International Research Corporation PCL (IRCP.BK) is 10.25%.

The Cost of Debt of International Research Corporation PCL (IRCP.BK) is 4.25%.

	Range	Selected
Cost of equity	8.90% - 11.60%	10.25%
Tax rate	17.60% - 21.10%	19.35%
Cost of debt	4.00% - 4.50%	4.25%
WACC	6.2% - 7.7%	6.9%

WACC

IRCP.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	0.86	0.95

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.90%	11.60%

Tax rate	17.60%	21.10%
Debt/Equity ratio	0.96	0.96
Cost of debt	4.00%	4.50%

After-tax WACC	6.2%	7.7%


Selected WACC	6.9%

IRCP.BK'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 IRCP.BK:

cost_of_equity (10.25%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.86) + 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.