MLP.DE WACC - Weighted Average Cost of Capital

The WACC of MLP SE (MLP.DE) is 5.4%.

The Cost of Equity of MLP SE (MLP.DE) is 11.55%.

The Cost of Debt of MLP SE (MLP.DE) is 5.20%.

	Range	Selected
Cost of equity	8.40% - 14.70%	11.55%
Tax rate	31.70% - 33.00%	32.35%
Cost of debt	4.00% - 6.40%	5.20%
WACC	4.1% - 6.8%	5.4%

WACC

MLP.DE WACC calculation

Category	Low	High

Long-term bond rate	2.8%	3.3%
Equity market risk premium	5.1%	6.1%
Adjusted beta	1.1	1.78

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.40%	14.70%

Tax rate	31.70%	33.00%
Debt/Equity ratio	3.16	3.16
Cost of debt	4.00%	6.40%

After-tax WACC	4.1%	6.8%


Selected WACC	5.4%

MLP.DE'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 MLP.DE:

cost_of_equity (11.55%) = risk_free_rate (3.05%) + equity_risk_premium (5.60%) * adjusted_beta (1.1) + 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.