MMTC.NS WACC - Weighted Average Cost of Capital

The WACC of MMTC Ltd (MMTC.NS) is 11.8%.

The Cost of Equity of MMTC Ltd (MMTC.NS) is 13.05%.

The Cost of Debt of MMTC Ltd (MMTC.NS) is 10.40%.

	Range	Selected
Cost of equity	11.30% - 14.80%	13.05%
Tax rate	19.10% - 26.10%	22.60%
Cost of debt	7.50% - 13.30%	10.40%
WACC	10.0% - 13.6%	11.8%

WACC

MMTC.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.53	0.74

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.30%	14.80%

Tax rate	19.10%	26.10%
Debt/Equity ratio	0.32	0.32
Cost of debt	7.50%	13.30%

After-tax WACC	10.0%	13.6%


Selected WACC	11.8%

MMTC.NS'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 MMTC.NS:

cost_of_equity (13.05%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.53) + 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.