Invictus Energy Ltd (IVZ.AX) WACC Analysis

As of June 4, 2025, Invictus Energy Ltd (IVZ.AX) carries a Weighted Average Cost of Capital (WACC) of 7.7%. WACC reflects the blended rate Invictus Energy Ltd must pay to both equity and debt holders.

Within that, the cost of equity is 6.2%, the cost of debt is 4.6%, and the effective tax rate is 30.0%.

Breakdown of WACC Components

• Long-term bond rate: 4.0% – 4.5%
• Equity market risk premium: 5.1% – 6.1%
• Adjusted beta: 0.42 – 0.68
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0

What It Means for Investors

With a selected WACC of 7.7%, Invictus Energy Ltd must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.