MEG.WA WACC - Weighted Average Cost of Capital

The WACC of Megaron SA (MEG.WA) is 10.8%.

The Cost of Equity of Megaron SA (MEG.WA) is 11.70%.

The Cost of Debt of Megaron SA (MEG.WA) is 7.10%.

	Range	Selected
Cost of equity	10.00% - 13.40%	11.70%
Tax rate	18.50% - 21.20%	19.85%
Cost of debt	7.00% - 7.20%	7.10%
WACC	9.4% - 12.3%	10.8%

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	0.71	0.94

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.00%	13.40%

Tax rate	18.50%	21.20%
Debt/Equity ratio	0.17	0.17
Cost of debt	7.00%	7.20%

After-tax WACC	9.4%	12.3%


Selected WACC	10.8%

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 (11.70%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.71) + 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.