MGNI
Magnite Inc
Price:  
14.89 
USD
Volume:  
6,610,805.00
United States | Internet & Direct Marketing Retail
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MGNI WACC - Weighted Average Cost of Capital

The WACC of Magnite Inc (MGNI) is 9.2%.

The Cost of Equity of Magnite Inc (MGNI) is 9.40%.
The Cost of Debt of Magnite Inc (MGNI) is 9.10%.

Range Selected
Cost of equity 7.60% - 11.20% 9.40%
Tax rate 2.90% - 7.90% 5.40%
Cost of debt 9.10% - 9.10% 9.10%
WACC 7.9% - 10.5% 9.2%
WACC

MGNI WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.82 1.13
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.60% 11.20%
Tax rate 2.90% 7.90%
Debt/Equity ratio 0.32 0.32
Cost of debt 9.10% 9.10%
After-tax WACC 7.9% 10.5%
Selected WACC 9.2%

MGNI'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 MGNI:

cost_of_equity (9.40%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.82) + 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.