IRL.WA WACC - Weighted Average Cost of Capital
The WACC of Inter RAO Lietuva AB (IRL.WA) is 10.5%.
| Range | Selected | |
| Cost of equity | 8.7% - 12.4% | 10.55% |
| Tax rate | 15.8% - 17.3% | 16.55% |
| Cost of debt | 4.0% - 6.1% | 5.05% |
| WACC | 8.6% - 12.3% | 10.5% |
| Category | Low | High |
| Long-term bond rate | 5.5% | 6.0% |
| Equity market risk premium | 6.3% | 7.3% |
| Adjusted beta | 0.5 | 0.81 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.7% | 12.4% |
| Tax rate | 15.8% | 17.3% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 4.0% | 6.1% |
| After-tax WACC | 8.6% | 12.3% |
| Selected WACC | 10.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| IRL.WA | Inter RAO Lietuva AB | 0.01 | 0 | 0 |
| AYEN.IS | Ayen Enerji AS | 1.23 | 1.5 | 0.74 |
| BDZ.WA | Elektrocieplownia Bedzin SA | 0.2 | 0.98 | 0.84 |
| EDHN.SW | Energiedienst Holding AG | 0.08 | 0.24 | 0.23 |
| ELEC.PA | Electricite de Strasbourg SA | 0.02 | 0.04 | 0.04 |
| FKRFT.OL | Fjordkraft Holding ASA | 0.23 | 0.31 | 0.26 |
| HREN.SW | Romande Energie Holding SA | 0.09 | 0.16 | 0.15 |
| IGN1L.VS | Ignitis Grupe AB | 1.23 | 1.43 | 0.7 |
| ODAS.IS | ODAS Elektrik Uretim Sanayi Ticaret AS | 1.06 | 1.56 | 0.83 |
| ZEP.WA | Zespol Elektrowni Patnow Adamow Konin SA | 0.03 | 0.72 | 0.7 |
| Low | High | |
| Unlevered beta | 0.25 | 0.7 |
| Relevered beta | 0.25 | 0.72 |
| Adjusted relevered beta | 0.5 | 0.81 |
IRL.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 IRL.WA:
cost_of_equity (10.55%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.5) + 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.