MBT.L WACC - Weighted Average Cost of Capital
The WACC of Mobile Tornado Group PLC (MBT.L) is 5.0%.
| Range | Selected | |
| Cost of equity | 5.6% - 8.0% | 6.8% |
| Tax rate | 13.7% - 18.9% | 16.3% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.7% - 5.3% | 5.0% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.27 | 0.43 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.6% | 8.0% |
| Tax rate | 13.7% | 18.9% |
| Debt/Equity ratio | 2.2 | 2.2 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.7% | 5.3% |
| Selected WACC | 5.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| MBT.L | Mobile Tornado Group PLC | 2.2 | 3.01 | 1.07 |
| ARC.L | Arcontech Group PLC | 0.05 | -0.45 | -0.43 |
| B24.WA | Brand 24 SA | 0.04 | 0.07 | 0.07 |
| DISH.L | BigDish PLC | 2.68 | 0.13 | 0.04 |
| HEEROS.HE | Heeros Oyj | 0.02 | -0.73 | -0.71 |
| INX.L | i-nexus Global PLC | 3.66 | -0.87 | -0.22 |
| M4B.WA | M4B SA | 0.14 | 0.19 | 0.17 |
| O5H.DE | Openlimit Holding AG | 15.42 | 0.25 | 0.02 |
| SMART.IS | Smartiks Yazilim AS | 0.04 | 0.97 | 0.94 |
| TIDE.L | Crimson Tide PLC | 0.21 | 0.86 | 0.74 |
| XMR.ST | XMReality AB (publ) | 0.98 | -0.12 | -0.07 |
| Low | High | |
| Unlevered beta | 0.02 | 0.07 |
| Relevered beta | -0.09 | 0.15 |
| Adjusted relevered beta | 0.27 | 0.43 |
MBT.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 MBT.L:
cost_of_equity (6.80%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.27) + 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.