MAB.WA
Mabion SA
Price:  
10.36 
PLN
Volume:  
19,570.00
Poland | Biotechnology
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MAB.WA WACC - Weighted Average Cost of Capital

The WACC of Mabion SA (MAB.WA) is 12.9%.

The Cost of Equity of Mabion SA (MAB.WA) is 13.60%.
The Cost of Debt of Mabion SA (MAB.WA) is 10.15%.

Range Selected
Cost of equity 10.70% - 16.50% 13.60%
Tax rate 3.10% - 10.10% 6.60%
Cost of debt 6.70% - 13.60% 10.15%
WACC 10.0% - 15.8% 12.9%
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 0.83 1.36
Additional risk adjustments 0.0% 0.5%
Cost of equity 10.70% 16.50%
Tax rate 3.10% 10.10%
Debt/Equity ratio 0.2 0.2
Cost of debt 6.70% 13.60%
After-tax WACC 10.0% 15.8%
Selected WACC 12.9%

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 (13.60%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.83) + 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.