MCI.WA WACC - Weighted Average Cost of Capital

The WACC of MCI Capital SA (MCI.WA) is 9.5%.

The Cost of Equity of MCI Capital SA (MCI.WA) is 10.40%.

The Cost of Debt of MCI Capital SA (MCI.WA) is 7.25%.

	Range	Selected
Cost of equity	9.40% - 11.40%	10.40%
Tax rate	24.20% - 29.80%	27.00%
Cost of debt	6.80% - 7.70%	7.25%
WACC	8.6% - 10.3%	9.5%

WACC

MCI.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.61	0.67

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.40%	11.40%

Tax rate	24.20%	29.80%
Debt/Equity ratio	0.22	0.22
Cost of debt	6.80%	7.70%

After-tax WACC	8.6%	10.3%


Selected WACC	9.5%

MCI.WA'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 MCI.WA:

cost_of_equity (10.40%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.61) + 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.