IXI.L
IXICO PLC
Price:  
10.75 
GBP
Volume:  
187,864.00
United Kingdom | Life Sciences Tools & Services
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IXI.L WACC - Weighted Average Cost of Capital

The WACC of IXICO PLC (IXI.L) is 7.9%.

The Cost of Equity of IXICO PLC (IXI.L) is 8.00%.
The Cost of Debt of IXICO PLC (IXI.L) is 5.00%.

Range Selected
Cost of equity 6.80% - 9.20% 8.00%
Tax rate 12.10% - 14.70% 13.40%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.7% - 9.1% 7.9%
WACC

IXI.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.46 0.61
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.80% 9.20%
Tax rate 12.10% 14.70%
Debt/Equity ratio 0.03 0.03
Cost of debt 5.00% 5.00%
After-tax WACC 6.7% 9.1%
Selected WACC 7.9%

IXI.L'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 IXI.L:

cost_of_equity (8.00%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.46) + 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.