MINT.BK WACC - Weighted Average Cost of Capital

The WACC of Minor International PCL (MINT.BK) is 6.9%.

The Cost of Equity of Minor International PCL (MINT.BK) is 9.60%.

The Cost of Debt of Minor International PCL (MINT.BK) is 6.60%.

	Range	Selected
Cost of equity	8.30% - 10.90%	9.60%
Tax rate	22.20% - 28.00%	25.10%
Cost of debt	5.40% - 7.80%	6.60%
WACC	6.0% - 7.9%	6.9%

WACC

MINT.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	0.78	0.87

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.30%	10.90%

Tax rate	22.20%	28.00%
Debt/Equity ratio	1.33	1.33
Cost of debt	5.40%	7.80%

After-tax WACC	6.0%	7.9%


Selected WACC	6.9%

MINT.BK'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 MINT.BK:

cost_of_equity (9.60%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.78) + 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.