MDLZ
Mondelez International Inc
Price:  
67.75 
USD
Volume:  
7,394,799.00
United States | Food Products
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Mondelez WACC - Weighted Average Cost of Capital

The WACC of Mondelez International Inc (MDLZ) is 5.5%.

The Cost of Equity of Mondelez International Inc (MDLZ) is 6.00%.
The Cost of Debt of Mondelez International Inc (MDLZ) is 4.25%.

Range Selected
Cost of equity 5.30% - 6.70% 6.00%
Tax rate 26.50% - 27.00% 26.75%
Cost of debt 4.00% - 4.50% 4.25%
WACC 4.9% - 6.1% 5.5%
WACC

Mondelez WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.3 0.33
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.30% 6.70%
Tax rate 26.50% 27.00%
Debt/Equity ratio 0.2 0.2
Cost of debt 4.00% 4.50%
After-tax WACC 4.9% 6.1%
Selected WACC 5.5%

Mondelez'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 Mondelez:

cost_of_equity (6.00%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.3) + 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.