MDB
MongoDB Inc
Price:  
171.64 
USD
Volume:  
1,930,226.00
United States | IT Services
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MongoDB WACC - Weighted Average Cost of Capital

The WACC of MongoDB Inc (MDB) is 9.4%.

The Cost of Equity of MongoDB Inc (MDB) is 9.35%.
The Cost of Debt of MongoDB Inc (MDB) is 5.50%.

Range Selected
Cost of equity 8.10% - 10.60% 9.35%
Tax rate 1.80% - 2.60% 2.20%
Cost of debt 4.00% - 7.00% 5.50%
WACC 8.1% - 10.6% 9.4%
WACC

MongoDB WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.92 1.03
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.10% 10.60%
Tax rate 1.80% 2.60%
Debt/Equity ratio 0 0
Cost of debt 4.00% 7.00%
After-tax WACC 8.1% 10.6%
Selected WACC 9.4%

MongoDB'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 MongoDB:

cost_of_equity (9.35%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.92) + 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.