IBI.TA WACC - Weighted Average Cost of Capital

The WACC of IBI Investment House Ltd (IBI.TA) is 10.8%.

The Cost of Equity of IBI Investment House Ltd (IBI.TA) is 11.00%.

The Cost of Debt of IBI Investment House Ltd (IBI.TA) is 7.00%.

	Range	Selected
Cost of equity	9.70% - 12.30%	11.00%
Tax rate	27.70% - 29.40%	28.55%
Cost of debt	5.40% - 8.60%	7.00%
WACC	9.5% - 12.1%	10.8%

WACC

IBI.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.8	0.91

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.70%	12.30%

Tax rate	27.70%	29.40%
Debt/Equity ratio	0.05	0.05
Cost of debt	5.40%	8.60%

After-tax WACC	9.5%	12.1%


Selected WACC	10.8%

IBI.TA'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 IBI.TA:

cost_of_equity (11.00%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.8) + 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.