ISS.CO WACC - Weighted Average Cost of Capital

The WACC of Iss A/S (ISS.CO) is 6.1%.

The Cost of Equity of Iss A/S (ISS.CO) is 7.60%.

The Cost of Debt of Iss A/S (ISS.CO) is 4.25%.

	Range	Selected
Cost of equity	5.90% - 9.30%	7.60%
Tax rate	18.40% - 20.70%	19.55%
Cost of debt	4.00% - 4.50%	4.25%
WACC	4.9% - 7.2%	6.1%

WACC

ISS.CO WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.62	0.91

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.90%	9.30%

Tax rate	18.40%	20.70%
Debt/Equity ratio	0.59	0.59
Cost of debt	4.00%	4.50%

After-tax WACC	4.9%	7.2%


Selected WACC	6.1%

ISS.CO'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 ISS.CO:

cost_of_equity (7.60%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.62) + 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.