META.BK WACC - Weighted Average Cost of Capital

The WACC of Meta Corporation PCL (META.BK) is 8.2%.

The Cost of Equity of Meta Corporation PCL (META.BK) is 7.15%.

The Cost of Debt of Meta Corporation PCL (META.BK) is 8.80%.

	Range	Selected
Cost of equity	6.00% - 8.30%	7.15%
Tax rate	0.10% - 0.30%	0.20%
Cost of debt	7.00% - 10.60%	8.80%
WACC	6.6% - 9.7%	8.2%

WACC

META.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	0.47	0.56

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.00%	8.30%

Tax rate	0.10%	0.30%
Debt/Equity ratio	1.81	1.81
Cost of debt	7.00%	10.60%

After-tax WACC	6.6%	9.7%


Selected WACC	8.2%

META.BK'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 META.BK:

cost_of_equity (7.15%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.47) + 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.