MBAX.BK WACC - Weighted Average Cost of Capital

The WACC of Multibax PCL (MBAX.BK) is 13.3%.

The Cost of Equity of Multibax PCL (MBAX.BK) is 18.85%.

The Cost of Debt of Multibax PCL (MBAX.BK) is 13.30%.

	Range	Selected
Cost of equity	13.60% - 24.10%	18.85%
Tax rate	14.70% - 15.10%	14.90%
Cost of debt	4.00% - 22.60%	13.30%
WACC	6.1% - 20.5%	13.3%

WACC

MBAX.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	1.49	2.43

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.60%	24.10%

Tax rate	14.70%	15.10%
Debt/Equity ratio	2.79	2.79
Cost of debt	4.00%	22.60%

After-tax WACC	6.1%	20.5%


Selected WACC	13.3%

MBAX.BK'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 MBAX.BK:

cost_of_equity (18.85%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (1.49) + 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.