IS8.DE WACC - Weighted Average Cost of Capital
The WACC of Ifa Systems AG (IS8.DE) is 6.1%.
| Range | Selected | |
| Cost of equity | 7.6% - 10.9% | 9.25% |
| Tax rate | 19.0% - 36.9% | 27.95% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.4% - 6.9% | 6.1% |
| Category | Low | High |
| Long-term bond rate | 2.6% | 3.1% |
| Equity market risk premium | 5.5% | 6.5% |
| Adjusted beta | 0.92 | 1.12 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.6% | 10.9% |
| Tax rate | 19.0% | 36.9% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.4% | 6.9% |
| Selected WACC | 6.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| IS8.DE | Ifa Systems AG | 0.95 | 0.63 | 0.37 |
| ALMDT.PA | Median Technologies SA | 0.43 | -0.49 | -0.37 |
| COG.L | Cambridge Cognition Holdings PLC | 0 | 1.09 | 1.09 |
| FRISQ.ST | Frisq Holding AB (publ) | 0.14 | 0.73 | 0.67 |
| INHC.L | Induction Healthcare Group PLC | 0.01 | -0.81 | -0.81 |
| INS.L | Instem PLC | 0.01 | 0.56 | 0.55 |
| IQAI.L | IQ-AI Ltd | 1.05 | 1.26 | 0.71 |
| MDA.WA | Medapp SA | 0.01 | 0.64 | 0.63 |
| NXU.DE | Nexus AG | 0.02 | 0.1 | 0.1 |
| PHA.PA | Pharmagest Interactive SA | 0.06 | 0.58 | 0.55 |
| SDT.PA | Visiodent SA | 0.19 | -0.21 | -0.18 |
| Low | High | |
| Unlevered beta | 0.37 | 0.55 |
| Relevered beta | 0.88 | 1.18 |
| Adjusted relevered beta | 0.92 | 1.12 |
IS8.DE'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 IS8.DE:
cost_of_equity (9.25%) = risk_free_rate (2.85%) + equity_risk_premium (6.00%) * adjusted_beta (0.92) + 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.