ML WACC - Weighted Average Cost of Capital

The WACC of MoneyLion Inc (ML) is 7.5%.

The Cost of Equity of MoneyLion Inc (ML) is 6.90%.

The Cost of Debt of MoneyLion Inc (ML) is 12.25%.

	Range	Selected
Cost of equity	6.10% - 7.70%	6.90%
Tax rate	1.40% - 2.90%	2.15%
Cost of debt	12.10% - 12.40%	12.25%
WACC	6.7% - 8.2%	7.5%

WACC

ML WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	4.6%	5.6%
Adjusted beta	0.48	0.51

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.10%	7.70%

Tax rate	1.40%	2.90%
Debt/Equity ratio	0.12	0.12
Cost of debt	12.10%	12.40%

After-tax WACC	6.7%	8.2%


Selected WACC	7.5%

ML'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 ML:

cost_of_equity (6.90%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.48) + 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.