IVS.MI
IVS Group SA
Price:  
7.16 
EUR
Volume:  
954.00
Luxembourg | Internet & Direct Marketing Retail
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IVS.MI WACC - Weighted Average Cost of Capital

The WACC of IVS Group SA (IVS.MI) is 7.7%.

The Cost of Equity of IVS Group SA (IVS.MI) is 10.95%.
The Cost of Debt of IVS Group SA (IVS.MI) is 5.00%.

Range Selected
Cost of equity 9.90% - 12.00% 10.95%
Tax rate 14.80% - 25.10% 19.95%
Cost of debt 5.00% - 5.00% 5.00%
WACC 7.3% - 8.2% 7.7%
WACC

IVS.MI WACC calculation

Category Low High
Long-term bond rate 3.7% 4.2%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.75 0.79
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.90% 12.00%
Tax rate 14.80% 25.10%
Debt/Equity ratio 0.87 0.87
Cost of debt 5.00% 5.00%
After-tax WACC 7.3% 8.2%
Selected WACC 7.7%

IVS.MI'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 IVS.MI:

cost_of_equity (10.95%) = risk_free_rate (3.95%) + equity_risk_premium (8.80%) * adjusted_beta (0.75) + 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.