MLTM.TA WACC - Weighted Average Cost of Capital

The WACC of Malam Team Ltd (MLTM.TA) is 10.2%.

The Cost of Equity of Malam Team Ltd (MLTM.TA) is 13.00%.

The Cost of Debt of Malam Team Ltd (MLTM.TA) is 5.30%.

	Range	Selected
Cost of equity	11.50% - 14.50%	13.00%
Tax rate	22.70% - 24.70%	23.70%
Cost of debt	4.00% - 6.60%	5.30%
WACC	8.9% - 11.6%	10.2%

WACC

MLTM.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	1.09	1.22

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.50%	14.50%

Tax rate	22.70%	24.70%
Debt/Equity ratio	0.45	0.45
Cost of debt	4.00%	6.60%

After-tax WACC	8.9%	11.6%


Selected WACC	10.2%

MLTM.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 MLTM.TA:

cost_of_equity (13.00%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (1.09) + 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.