MLSR.TA WACC - Weighted Average Cost of Capital

The WACC of Melisron Ltd (MLSR.TA) is 7.6%.

The Cost of Equity of Melisron Ltd (MLSR.TA) is 10.50%.

The Cost of Debt of Melisron Ltd (MLSR.TA) is 4.70%.

	Range	Selected
Cost of equity	9.10% - 11.90%	10.50%
Tax rate	21.60% - 22.80%	22.20%
Cost of debt	4.00% - 5.40%	4.70%
WACC	6.5% - 8.6%	7.6%

WACC

MLSR.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.7	0.86

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.10%	11.90%

Tax rate	21.60%	22.80%
Debt/Equity ratio	0.76	0.76
Cost of debt	4.00%	5.40%

After-tax WACC	6.5%	8.6%


Selected WACC	7.6%

MLSR.TA'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 MLSR.TA:

cost_of_equity (10.50%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.7) + 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.