MIT.V WACC - Weighted Average Cost of Capital
The WACC of Mint Corp (MIT.V) is 8.1%.
| Range | Selected | |
| Cost of equity | 6.5% - 10.1% | 8.3% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.4% - 9.8% | 8.1% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.51 | 0.86 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.5% | 10.1% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 0.05 | 0.05 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.4% | 9.8% |
| Selected WACC | 8.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| MIT.V | Mint Corp | 0.05 | 1.9 | 1.84 |
| AIHS | Senmiao Technology Ltd | 0.08 | 0.29 | 0.27 |
| AXIS.V | Axis Auto Finance Inc | 1.32 | 0.51 | 0.26 |
| CPSS | Consumer Portfolio Services Inc | 16.5 | 0.21 | 0.02 |
| HX | Xiaobai Maimai Inc | 0.18 | 1.4 | 1.24 |
| LX | Lexinfintech Holdings Ltd | 0.5 | 1.3 | 0.96 |
| QFIN | 360 DigiTech Inc | 0.03 | 1.39 | 1.36 |
| RFC.V | Rifco Inc | 6.08 | 1.21 | 0.22 |
| WEI | Weidai Ltd | 0.01 | 0.63 | 0.63 |
| YUANF | Fincera Inc | 9.59 | 0 | 0 |
| Low | High | |
| Unlevered beta | 0.27 | 0.76 |
| Relevered beta | 0.27 | 0.79 |
| Adjusted relevered beta | 0.51 | 0.86 |
MIT.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 MIT.V:
cost_of_equity (8.30%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.51) + 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.