IVX.V WACC - Weighted Average Cost of Capital

The WACC of Inventronics Ltd (IVX.V) is 8.9%.

The Cost of Equity of Inventronics Ltd (IVX.V) is 8.10%.

The Cost of Debt of Inventronics Ltd (IVX.V) is 14.80%.

	Range	Selected
Cost of equity	6.90% - 9.30%	8.10%
Tax rate	30.90% - 34.70%	32.80%
Cost of debt	5.70% - 23.90%	14.80%
WACC	5.5% - 12.3%	8.9%

WACC

IVX.V WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.59	0.73

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.90%	9.30%

Tax rate	30.90%	34.70%
Debt/Equity ratio	0.89	0.89
Cost of debt	5.70%	23.90%

After-tax WACC	5.5%	12.3%


Selected WACC	8.9%

IVX.V'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 IVX.V:

cost_of_equity (8.10%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.59) + 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.