MGT.WA WACC - Weighted Average Cost of Capital

The WACC of Mangata Holding SA (MGT.WA) is 9.1%.

The Cost of Equity of Mangata Holding SA (MGT.WA) is 10.90%.

The Cost of Debt of Mangata Holding SA (MGT.WA) is 5.35%.

	Range	Selected
Cost of equity	9.60% - 12.20%	10.90%
Tax rate	15.70% - 16.90%	16.30%
Cost of debt	4.00% - 6.70%	5.35%
WACC	7.9% - 10.4%	9.1%

WACC

MGT.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.64	0.78

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.60%	12.20%

Tax rate	15.70%	16.90%
Debt/Equity ratio	0.37	0.37
Cost of debt	4.00%	6.70%

After-tax WACC	7.9%	10.4%


Selected WACC	9.1%

MGT.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 MGT.WA:

cost_of_equity (10.90%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.64) + 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.