MIG.AT WACC - Weighted Average Cost of Capital

The WACC of Marfin Investment Group Holdings SA (MIG.AT) is 8.0%.

The Cost of Equity of Marfin Investment Group Holdings SA (MIG.AT) is 11.75%.

The Cost of Debt of Marfin Investment Group Holdings SA (MIG.AT) is 5.25%.

	Range	Selected
Cost of equity	10.00% - 13.50%	11.75%
Tax rate	23.20% - 24.00%	23.60%
Cost of debt	4.00% - 6.50%	5.25%
WACC	6.6% - 9.3%	8.0%

WACC

MIG.AT WACC calculation

Category	Low	High

Long-term bond rate	3.3%	3.8%
Equity market risk premium	8.8%	9.8%
Adjusted beta	0.76	0.94

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.00%	13.50%

Tax rate	23.20%	24.00%
Debt/Equity ratio	0.94	0.94
Cost of debt	4.00%	6.50%

After-tax WACC	6.6%	9.3%


Selected WACC	8.0%

MIG.AT'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 MIG.AT:

cost_of_equity (11.75%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.76) + 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.