M4B.WA WACC - Weighted Average Cost of Capital

The WACC of M4B SA (M4B.WA) is 11.2%.

The Cost of Equity of M4B SA (M4B.WA) is 10.20%.

The Cost of Debt of M4B SA (M4B.WA) is 21.95%.

	Range	Selected
Cost of equity	8.50% - 11.90%	10.20%
Tax rate	13.80% - 24.30%	19.05%
Cost of debt	18.40% - 25.50%	21.95%
WACC	9.4% - 12.9%	11.2%

WACC

M4B.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.47	0.74

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.50%	11.90%

Tax rate	13.80%	24.30%
Debt/Equity ratio	0.15	0.15
Cost of debt	18.40%	25.50%

After-tax WACC	9.4%	12.9%


Selected WACC	11.2%

M4B.WA'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 M4B.WA:

cost_of_equity (10.20%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.47) + 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.