MBO.L
MobilityOne Ltd
Price:  
1.25 
GBP
Volume:  
159,869.00
Malaysia | Software
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MBO.L WACC - Weighted Average Cost of Capital

The WACC of MobilityOne Ltd (MBO.L) is 5.7%.

The Cost of Equity of MobilityOne Ltd (MBO.L) is 8.75%.
The Cost of Debt of MobilityOne Ltd (MBO.L) is 6.05%.

Range Selected
Cost of equity 6.10% - 11.40% 8.75%
Tax rate 19.10% - 26.70% 22.90%
Cost of debt 5.10% - 7.00% 6.05%
WACC 4.7% - 6.7% 5.7%
WACC

MBO.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.36 0.91
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.10% 11.40%
Tax rate 19.10% 26.70%
Debt/Equity ratio 2.95 2.95
Cost of debt 5.10% 7.00%
After-tax WACC 4.7% 6.7%
Selected WACC 5.7%

MBO.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 MBO.L:

cost_of_equity (8.75%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.36) + 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.