MMAN.TA WACC - Weighted Average Cost of Capital

The WACC of Maman Cargo Terminals & Handling Ltd (MMAN.TA) is 7.2%.

The Cost of Equity of Maman Cargo Terminals & Handling Ltd (MMAN.TA) is 11.75%.

The Cost of Debt of Maman Cargo Terminals & Handling Ltd (MMAN.TA) is 6.60%.

	Range	Selected
Cost of equity	8.50% - 15.00%	11.75%
Tax rate	22.10% - 23.20%	22.65%
Cost of debt	4.80% - 8.40%	6.60%
WACC	5.2% - 9.1%	7.2%

WACC

MMAN.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.6	1.29

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.50%	15.00%

Tax rate	22.10%	23.20%
Debt/Equity ratio	2.25	2.25
Cost of debt	4.80%	8.40%

After-tax WACC	5.2%	9.1%


Selected WACC	7.2%

MMAN.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 MMAN.TA:

cost_of_equity (11.75%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.6) + 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.