MAB.WA WACC - Weighted Average Cost of Capital

The WACC of Mabion SA (MAB.WA) is 12.7%.

The Cost of Equity of Mabion SA (MAB.WA) is 13.45%.

The Cost of Debt of Mabion SA (MAB.WA) is 10.15%.

	Range	Selected
Cost of equity	10.60% - 16.30%	13.45%
Tax rate	3.10% - 10.10%	6.60%
Cost of debt	6.70% - 13.60%	10.15%
WACC	9.9% - 15.6%	12.7%

WACC

MAB.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.8	1.34

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.60%	16.30%

Tax rate	3.10%	10.10%
Debt/Equity ratio	0.22	0.22
Cost of debt	6.70%	13.60%

After-tax WACC	9.9%	15.6%


Selected WACC	12.7%

MAB.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 MAB.WA:

cost_of_equity (13.45%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.8) + 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.