IZS.WA WACC - Weighted Average Cost of Capital

The WACC of Izostal SA (IZS.WA) is 7.4%.

The Cost of Equity of Izostal SA (IZS.WA) is 10.45%.

The Cost of Debt of Izostal SA (IZS.WA) is 7.80%.

	Range	Selected
Cost of equity	9.20% - 11.70%	10.45%
Tax rate	20.60% - 20.80%	20.70%
Cost of debt	4.90% - 10.70%	7.80%
WACC	5.4% - 9.4%	7.4%

WACC

IZS.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.58	0.7

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.20%	11.70%

Tax rate	20.60%	20.80%
Debt/Equity ratio	2.55	2.55
Cost of debt	4.90%	10.70%

After-tax WACC	5.4%	9.4%


Selected WACC	7.4%

IZS.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 IZS.WA:

cost_of_equity (10.45%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.58) + 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.