MDARA.RG WACC - Weighted Average Cost of Capital
The WACC of MADARA Cosmetics AS (MDARA.RG) is 6.2%.
| Range | Selected | |
| Cost of equity | 4.6% - 7.6% | 6.1% |
| Tax rate | 6.5% - 12.1% | 9.3% |
| Cost of debt | 7.0% - 7.0% | 7% |
| WACC | 5.6% - 6.9% | 6.2% |
| Category | Low | High |
| Long-term bond rate | 1.0% | 1.5% |
| Equity market risk premium | 6.9% | 7.8% |
| Adjusted beta | 0.52 | 0.71 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.6% | 7.6% |
| Tax rate | 6.5% | 12.1% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 7.0% | 7.0% |
| After-tax WACC | 5.6% | 6.9% |
| Selected WACC | 6.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| MDARA.RG | MADARA Cosmetics AS | 1.07 | 0.19 | 0.1 |
| BIE.MI | Bioera SpA | 12.98 | -0.02 | 0 |
| ENV.MI | Enervit SpA | 0.15 | 0.12 | 0.11 |
| MIR.WA | Miraculum SA | 0.49 | 0.43 | 0.3 |
| MPH.WA | Master Pharm SA | 0.05 | 0.35 | 0.34 |
| NATTO.OL | Nattopharma ASA | 0.02 | 1.22 | 1.2 |
| NICO.ST | Nicoccino Holding AB (publ) | 0.04 | -0.92 | -0.89 |
| NNH.ST | New Nordic Healthbrands AB | 0.27 | 0.22 | 0.18 |
| PAP.AT | Papoutsanis Industrial and Commercial of Consumer Goods SA | 0.37 | 0.51 | 0.38 |
| PHR.WA | Pharmena SA | 0.21 | 0.35 | 0.3 |
| VLG.L | Venture Life Group PLC | 0.38 | 0.14 | 0.1 |
| Low | High | |
| Unlevered beta | 0.11 | 0.3 |
| Relevered beta | 0.28 | 0.57 |
| Adjusted relevered beta | 0.52 | 0.71 |
MDARA.RG'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 MDARA.RG:
cost_of_equity (6.10%) = risk_free_rate (1.25%) + equity_risk_premium (7.35%) * adjusted_beta (0.52) + 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.