512267.BO WACC - Weighted Average Cost of Capital

The WACC of Media Matrix Worldwide Ltd (512267.BO) is 13.1%.

The Cost of Equity of Media Matrix Worldwide Ltd (512267.BO) is 13.60%.

The Cost of Debt of Media Matrix Worldwide Ltd (512267.BO) is 15.30%.

	Range	Selected
Cost of equity	11.90% - 15.30%	13.60%
Tax rate	39.60% - 47.10%	43.35%
Cost of debt	10.00% - 20.60%	15.30%
WACC	11.3% - 14.8%	13.1%

WACC

512267.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.6	0.8

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.90%	15.30%

Tax rate	39.60%	47.10%
Debt/Equity ratio	0.11	0.11
Cost of debt	10.00%	20.60%

After-tax WACC	11.3%	14.8%


Selected WACC	13.1%

512267.BO'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 512267.BO:

cost_of_equity (13.60%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.6) + 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.