MLG.WA WACC - Weighted Average Cost of Capital

The WACC of MLP Group SA (MLG.WA) is 8.5%.

The Cost of Equity of MLP Group SA (MLG.WA) is 10.35%.

The Cost of Debt of MLP Group SA (MLG.WA) is 9.00%.

	Range	Selected
Cost of equity	9.20% - 11.50%	10.35%
Tax rate	18.60% - 19.30%	18.95%
Cost of debt	4.00% - 14.00%	9.00%
WACC	5.6% - 11.4%	8.5%

WACC

MLG.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.58	0.68

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.20%	11.50%

Tax rate	18.60%	19.30%
Debt/Equity ratio	1.53	1.53
Cost of debt	4.00%	14.00%

After-tax WACC	5.6%	11.4%


Selected WACC	8.5%

MLG.WA'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 MLG.WA:

cost_of_equity (10.35%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.58) + 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.