MEG.WA WACC - Weighted Average Cost of Capital

The WACC of Megaron SA (MEG.WA) is 12.2%.

The Cost of Equity of Megaron SA (MEG.WA) is 14.35%.

The Cost of Debt of Megaron SA (MEG.WA) is 8.20%.

	Range	Selected
Cost of equity	12.90% - 15.80%	14.35%
Tax rate	15.10% - 17.40%	16.25%
Cost of debt	5.70% - 10.70%	8.20%
WACC	10.5% - 13.8%	12.2%

WACC

MEG.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	1.17	1.27

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.90%	15.80%

Tax rate	15.10%	17.40%
Debt/Equity ratio	0.42	0.42
Cost of debt	5.70%	10.70%

After-tax WACC	10.5%	13.8%


Selected WACC	12.2%

MEG.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 MEG.WA:

cost_of_equity (14.35%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (1.17) + 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.