MNS.WA WACC - Weighted Average Cost of Capital

The WACC of Mennica Skarbowa SA (MNS.WA) is 10.7%.

The Cost of Equity of Mennica Skarbowa SA (MNS.WA) is 12.40%.

The Cost of Debt of Mennica Skarbowa SA (MNS.WA) is 7.20%.

	Range	Selected
Cost of equity	11.00% - 13.80%	12.40%
Tax rate	15.80% - 19.70%	17.75%
Cost of debt	6.70% - 7.70%	7.20%
WACC	9.6% - 11.8%	10.7%

WACC

MNS.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.87	0.99

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.00%	13.80%

Tax rate	15.80%	19.70%
Debt/Equity ratio	0.35	0.35
Cost of debt	6.70%	7.70%

After-tax WACC	9.6%	11.8%


Selected WACC	10.7%

MNS.WA'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 MNS.WA:

cost_of_equity (12.40%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.87) + 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.