MCCS.QA WACC - Weighted Average Cost of Capital

The WACC of Mannai Corporation QPSC (MCCS.QA) is 8.4%.

The Cost of Equity of Mannai Corporation QPSC (MCCS.QA) is 11.15%.

The Cost of Debt of Mannai Corporation QPSC (MCCS.QA) is 6.30%.

	Range	Selected
Cost of equity	8.60% - 13.70%	11.15%
Tax rate	1.50% - 4.20%	2.85%
Cost of debt	4.00% - 8.60%	6.30%
WACC	6.1% - 10.7%	8.4%

WACC

MCCS.QA WACC calculation

Category	Low	High

Long-term bond rate	5.0%	5.5%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.6	1.1

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.60%	13.70%

Tax rate	1.50%	4.20%
Debt/Equity ratio	1.19	1.19
Cost of debt	4.00%	8.60%

After-tax WACC	6.1%	10.7%


Selected WACC	8.4%

MCCS.QA'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 MCCS.QA:

cost_of_equity (11.15%) = risk_free_rate (5.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.6) + 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.