MNRT.TA WACC - Weighted Average Cost of Capital

The WACC of Menivim The New REIT Ltd (MNRT.TA) is 7.2%.

The Cost of Equity of Menivim The New REIT Ltd (MNRT.TA) is 8.95%.

The Cost of Debt of Menivim The New REIT Ltd (MNRT.TA) is 6.30%.

	Range	Selected
Cost of equity	8.10% - 9.80%	8.95%
Tax rate	23.00% - 23.00%	23.00%
Cost of debt	6.00% - 6.60%	6.30%
WACC	6.6% - 7.8%	7.2%

WACC

MNRT.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.53	0.56

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.10%	9.80%

Tax rate	23.00%	23.00%
Debt/Equity ratio	0.76	0.76
Cost of debt	6.00%	6.60%

After-tax WACC	6.6%	7.8%


Selected WACC	7.2%

MNRT.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 MNRT.TA:

cost_of_equity (8.95%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * 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.