MAIL.L WACC - Weighted Average Cost of Capital
The WACC of Mail ru Group Ltd (MAIL.L) is 7.0%.
| Range | Selected | |
| Cost of equity | 5.8% - 7.8% | 6.8% |
| Tax rate | 8.6% - 11.8% | 10.2% |
| Cost of debt | 8.4% - 8.4% | 8.4% |
| WACC | 6.3% - 7.7% | 7.0% |
| Category | Low | High |
| Long-term bond rate | 2.4% | 2.9% |
| Equity market risk premium | 4.8% | 5.8% |
| Adjusted beta | 0.7 | 0.75 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.8% | 7.8% |
| Tax rate | 8.6% | 11.8% |
| Debt/Equity ratio | 0.33 | 0.33 |
| Cost of debt | 8.4% | 8.4% |
| After-tax WACC | 6.3% | 7.7% |
| Selected WACC | 7.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| MAIL.L | Mail ru Group Ltd | 0.33 | 0.72 | 0.55 |
| ALAVY.PA | Audiovalley SA | 0.61 | 0.52 | 0.33 |
| ALFIL.PA | Filae SA | 0.09 | 0.34 | 0.31 |
| ALPLA.PA | Planet Media SA | 6.67 | -0.84 | -0.12 |
| ASWN.SW | Asmallworld AG | 0.2 | -0.1 | -0.09 |
| BOOM.L | Audioboom Group PLC | 0.01 | 2.05 | 2.03 |
| IEX.AS | IEX Group NV | 0.15 | 0.8 | 0.7 |
| MYRK.DE | MyHammer Holding AG | 0.01 | 0.16 | 0.16 |
| PRC.PA | Artmarket.com SA | 0.03 | 0.34 | 0.33 |
| SPEQT.ST | Speqta publ AB | 0.11 | 1.1 | 1 |
| Low | High | |
| Unlevered beta | 0.32 | 0.42 |
| Relevered beta | 0.55 | 0.63 |
| Adjusted relevered beta | 0.7 | 0.75 |
MAIL.L'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 MAIL.L:
cost_of_equity (6.80%) = risk_free_rate (2.65%) + equity_risk_premium (5.30%) * adjusted_beta (0.7) + 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.