MIN.AT WACC - Weighted Average Cost of Capital

The WACC of Minerva Knitwear SA (MIN.AT) is 4.5%.

The Cost of Equity of Minerva Knitwear SA (MIN.AT) is 10.85%.

The Cost of Debt of Minerva Knitwear SA (MIN.AT) is 4.40%.

	Range	Selected
Cost of equity	9.00% - 12.70%	10.85%
Tax rate	23.20% - 24.00%	23.60%
Cost of debt	4.00% - 4.80%	4.40%
WACC	4.0% - 5.1%	4.5%

WACC

MIN.AT WACC calculation

Category	Low	High

Long-term bond rate	3.3%	3.8%
Equity market risk premium	8.8%	9.8%
Adjusted beta	0.64	0.86

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.00%	12.70%

Tax rate	23.20%	24.00%
Debt/Equity ratio	5.28	5.28
Cost of debt	4.00%	4.80%

After-tax WACC	4.0%	5.1%


Selected WACC	4.5%

MIN.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 MIN.AT:

cost_of_equity (10.85%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * 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.