MARAS.HE WACC - Weighted Average Cost of Capital

The WACC of Martela Corp (MARAS.HE) is 7.9%.

The Cost of Equity of Martela Corp (MARAS.HE) is 23.35%.

The Cost of Debt of Martela Corp (MARAS.HE) is 5.50%.

	Range	Selected
Cost of equity	17.10% - 29.60%	23.35%
Tax rate	4.60% - 6.20%	5.40%
Cost of debt	4.00% - 7.00%	5.50%
WACC	5.8% - 10.1%	7.9%

WACC

MARAS.HE WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.7%	6.7%
Adjusted beta	2.53	3.88

Additional risk adjustments	0.0%	0.5%
Cost of equity	17.10%	29.60%

Tax rate	4.60%	6.20%
Debt/Equity ratio	5.61	5.61
Cost of debt	4.00%	7.00%

After-tax WACC	5.8%	10.1%


Selected WACC	7.9%

MARAS.HE'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 MARAS.HE:

cost_of_equity (23.35%) = risk_free_rate (2.95%) + equity_risk_premium (6.20%) * adjusted_beta (2.53) + 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.