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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 12.9%. The cost of equity is 9.8%, derived from a beta of 1.10 and a risk-free rate of 5.2%. The after-tax cost of debt is 477.2%. The capital structure is 99.3% equity and 0.7% debt.

Interpretation

A WACC of 12.9% 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 12.9% against industry peers to gauge its relative financing costs. A beta of 1.10 reflects the stock's volatility relative to the broader market.

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VALUATION

IBG WACC: 12.90% for Innovation Beverage Group Limited Ordinary Shares

Current inputs imply a 9.75% cost of equity and a 477.21% 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
12.90%
Cost of Equity
9.75%
Risk-Free Rate5.24%
Beta1.10
Market Risk Premium4.23%
Cost of Debt
477.21%
Pre-Tax Cost of Debt477.21%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 99.33%($3.63M)
Debt: 0.67%($0.02M)
Equity Component
9.69%
99.33% × 9.75%
Debt Component
3.22%
0.67% × 477.21%

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

Innovation Beverage Group Limited Ordinary Shares (IBG) currently screens with an estimated WACC of 12.90%. That blends a 9.75% cost of equity, a 477.21% pre-tax cost of debt, and a 99.33% 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 12.90% 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 1.10 and equity accounts for 99.33% 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.