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Innovation Beverage Group Limited Ordinary Shares (IBG) — WACC Analysis

WACC Breakdown

Innovation Beverage Group Limited Ordinary Shares (IBG) has a weighted average cost of capital (WACC) of 18.4%. The cost of equity is 9.4%, derived from a beta of 1.18 and a risk-free rate of 4.7%. The after-tax cost of debt is 57.9%. The capital structure is 81.5% equity and 18.5% debt.

Interpretation

A WACC of 18.4% indicates that the market perceives Innovation Beverage Group Limited Ordinary Shares as higher-risk, requiring a greater return to compensate investors.

Investors can compare IBG's WACC of 18.4% against industry peers to gauge its relative financing costs. A beta of 1.18 reflects the stock's volatility relative to the broader market.

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VALUATION

IBG WACC: 18.40% for Innovation Beverage Group Limited Ordinary Shares

Current inputs imply a 9.41% cost of equity and a 57.91% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Innovation Beverage Group Limited Ordinary Shares Common Stock (IBG) WACC Results
Weighted Average Cost of Capital
18.40%
Cost of Equity
9.41%
Risk-Free Rate4.67%
Beta1.18
Market Risk Premium4.23%
Cost of Debt
57.91%
Pre-Tax Cost of Debt57.91%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 81.46%($1.85M)
Debt: 18.54%($0.42M)
Equity Component
7.66%
81.46% × 9.41%
Debt Component
10.74%
18.54% × 57.91%

Innovation Beverage Group Limited Ordinary Shares (IBG) WACC in context

Innovation Beverage Group Limited Ordinary Shares (IBG) currently screens with an estimated WACC of 18.40%. That blends a 9.41% cost of equity, a 57.91% pre-tax cost of debt, and a 81.46% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

What IBG WACC implies

A 18.40% discount rate screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

How this page calculates IBG

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.18 and equity accounts for 81.46% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.