MMK.VI WACC - Weighted Average Cost of Capital

The WACC of Mayr Melnhof Karton AG (MMK.VI) is 6.6%.

The Cost of Equity of Mayr Melnhof Karton AG (MMK.VI) is 9.50%.

The Cost of Debt of Mayr Melnhof Karton AG (MMK.VI) is 5.20%.

	Range	Selected
Cost of equity	8.30% - 10.70%	9.50%
Tax rate	24.40% - 26.40%	25.40%
Cost of debt	4.00% - 6.40%	5.20%
WACC	5.6% - 7.6%	6.6%

WACC

MMK.VI WACC calculation

Category	Low	High

Long-term bond rate	2.8%	3.3%
Equity market risk premium	5.7%	6.7%
Adjusted beta	0.97	1.04

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.30%	10.70%

Tax rate	24.40%	26.40%
Debt/Equity ratio	1.05	1.05
Cost of debt	4.00%	6.40%

After-tax WACC	5.6%	7.6%


Selected WACC	6.6%

MMK.VI'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 MMK.VI:

cost_of_equity (9.50%) = risk_free_rate (3.05%) + equity_risk_premium (6.20%) * adjusted_beta (0.97) + 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.