MKEA.PA WACC - Weighted Average Cost of Capital
The WACC of Mauna Kea Technologies SAS (MKEA.PA) is 5.1%.
| Range | Selected | |
| Cost of equity | 5.4% - 7.7% | 6.55% |
| Tax rate | 25.9% - 27.1% | 26.5% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.6% - 5.7% | 5.1% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 6.2% | 7.2% |
| Adjusted beta | 0.37 | 0.5 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 7.7% |
| Tax rate | 25.9% | 27.1% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.6% | 5.7% |
| Selected WACC | 5.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| MKEA.PA | Mauna Kea Technologies SAS | 1 | 1.01 | 0.58 |
| ALSGD.PA | Spineguard SA | 0.47 | -0.21 | -0.15 |
| ALSPW.PA | Spineway SA | 24.99 | 0.2 | 0.01 |
| ALTER.PA | Theradiag SA | 0.12 | 0.11 | 0.1 |
| ALTHE.PA | Theraclion SA | 0.14 | 1 | 0.9 |
| AMPLI.PA | Amplitude Surgical SA | 0.4 | -0.2 | -0.15 |
| DIGN.ST | Dignitana AB | 0.05 | -0.37 | -0.35 |
| NXTMH.HE | Nexstim Oyj | 0.1 | 0.09 | 0.09 |
| PLUN.ST | ProstaLund AB | 0.12 | 0.07 | 0.06 |
| STIL.ST | Stille AB | 0.03 | 0.38 | 0.37 |
| Low | High | |
| Unlevered beta | 0.04 | 0.09 |
| Relevered beta | 0.06 | 0.25 |
| Adjusted relevered beta | 0.37 | 0.5 |
MKEA.PA'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 MKEA.PA:
cost_of_equity (6.55%) = risk_free_rate (3.35%) + equity_risk_premium (6.70%) * adjusted_beta (0.37) + 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.