MGOR.TA WACC - Weighted Average Cost of Capital

The WACC of Mega Or Holdings Ltd (MGOR.TA) is 7.7%.

The Cost of Equity of Mega Or Holdings Ltd (MGOR.TA) is 10.35%.

The Cost of Debt of Mega Or Holdings Ltd (MGOR.TA) is 6.20%.

	Range	Selected
Cost of equity	8.90% - 11.80%	10.35%
Tax rate	14.00% - 17.30%	15.65%
Cost of debt	4.00% - 8.40%	6.20%
WACC	6.1% - 9.3%	7.7%

WACC

MGOR.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.66	0.83

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.90%	11.80%

Tax rate	14.00%	17.30%
Debt/Equity ratio	1.07	1.07
Cost of debt	4.00%	8.40%

After-tax WACC	6.1%	9.3%


Selected WACC	7.7%

MGOR.TA'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 MGOR.TA:

cost_of_equity (10.35%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.66) + 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.