IZB.WA WACC - Weighted Average Cost of Capital

The WACC of Izoblok SA (IZB.WA) is 6.4%.

The Cost of Equity of Izoblok SA (IZB.WA) is 9.55%.

The Cost of Debt of Izoblok SA (IZB.WA) is 6.50%.

	Range	Selected
Cost of equity	8.40% - 10.70%	9.55%
Tax rate	13.00% - 16.70%	14.85%
Cost of debt	6.00% - 7.00%	6.50%
WACC	5.9% - 6.9%	6.4%

WACC

IZB.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.45	0.57

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.40%	10.70%

Tax rate	13.00%	16.70%
Debt/Equity ratio	3.51	3.51
Cost of debt	6.00%	7.00%

After-tax WACC	5.9%	6.9%


Selected WACC	6.4%

IZB.WA'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 IZB.WA:

cost_of_equity (9.55%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.45) + 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.