IRCP.BK WACC - Weighted Average Cost of Capital

The WACC of International Research Corporation PCL (IRCP.BK) is 8.3%.

The Cost of Equity of International Research Corporation PCL (IRCP.BK) is 13.10%.

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

	Range	Selected
Cost of equity	11.10% - 15.10%	13.10%
Tax rate	17.60% - 21.10%	19.35%
Cost of debt	4.00% - 4.50%	4.25%
WACC	7.2% - 9.4%	8.3%

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	1.15	1.37

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.10%	15.10%

Tax rate	17.60%	21.10%
Debt/Equity ratio	0.98	0.98
Cost of debt	4.00%	4.50%

After-tax WACC	7.2%	9.4%


Selected WACC	8.3%

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 (13.10%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (1.15) + 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.