MGZ.H.V WACC - Weighted Average Cost of Capital

The WACC of Mangazeya Mining Ltd (MGZ.H.V) is 8.1%.

The Cost of Equity of Mangazeya Mining Ltd (MGZ.H.V) is 25.15%.

The Cost of Debt of Mangazeya Mining Ltd (MGZ.H.V) is 6.50%.

	Range	Selected
Cost of equity	18.70% - 31.60%	25.15%
Tax rate	21.20% - 28.10%	24.65%
Cost of debt	4.30% - 8.70%	6.50%
WACC	5.8% - 10.3%	8.1%

WACC

MGZ.H.V WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	4.7%	5.7%
Adjusted beta	3.27	4.79

Additional risk adjustments	0.0%	0.5%
Cost of equity	18.70%	31.60%

Tax rate	21.20%	28.10%
Debt/Equity ratio	5.31	5.31
Cost of debt	4.30%	8.70%

After-tax WACC	5.8%	10.3%


Selected WACC	8.1%

MGZ.H.V'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 MGZ.H.V:

cost_of_equity (25.15%) = risk_free_rate (3.45%) + equity_risk_premium (5.20%) * adjusted_beta (3.27) + 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.