MCR.WA WACC - Weighted Average Cost of Capital
The WACC of Mercor SA (MCR.WA) is 8.1%.
| Range | Selected | |
| Cost of equity | 7.9% - 10.6% | 9.25% |
| Tax rate | 18.5% - 20.4% | 19.45% |
| Cost of debt | 4.8% - 6.4% | 5.6% |
| WACC | 7.0% - 9.3% | 8.1% |
| Category | Low | High |
| Long-term bond rate | 5.5% | 6.0% |
| Equity market risk premium | 6.3% | 7.3% |
| Adjusted beta | 0.38 | 0.56 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.9% | 10.6% |
| Tax rate | 18.5% | 20.4% |
| Debt/Equity ratio | 0.31 | 0.31 |
| Cost of debt | 4.8% | 6.4% |
| After-tax WACC | 7.0% | 9.3% |
| Selected WACC | 8.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| MCR.WA | Mercor SA | 0.31 | -0.22 | -0.17 |
| ALLUX.PA | Installux SA | 0.4 | 0.07 | 0.05 |
| ALU.L | Alumasc Group PLC | 0.15 | -0.03 | -0.03 |
| EGSER.IS | Ege Seramik Sanayi ve Ticaret AS | 0.02 | 1.11 | 1.1 |
| FRO.WA | Ferro SA | 0.16 | 0.37 | 0.33 |
| JFB.SG | Joh Friedrich Behrens AG | 6200 | -1.83 | 0 |
| PJP.WA | PJP Makrum SA | 0.93 | 0.12 | 0.07 |
| SVED B.ST | Svedbergs i Dalstorp AB | 0.32 | 0.48 | 0.38 |
| USAK.IS | Usak Seramik Sanayi AS | 0.63 | 1.12 | 0.75 |
| VSS1R.RG | Valmieras Stikla Skiedra AS | 5.1 | 1.19 | 0.24 |
| Low | High | |
| Unlevered beta | 0.06 | 0.27 |
| Relevered beta | 0.07 | 0.34 |
| Adjusted relevered beta | 0.38 | 0.56 |
MCR.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 MCR.WA:
cost_of_equity (9.25%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.38) + 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.