MNTV
Momentive Global Inc
Price:  
9.45 
USD
Volume:  
836,861.00
United States | Software
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MNTV WACC - Weighted Average Cost of Capital

The WACC of Momentive Global Inc (MNTV) is 10.0%.

The Cost of Equity of Momentive Global Inc (MNTV) is 10.50%.
The Cost of Debt of Momentive Global Inc (MNTV) is 5.75%.

Range Selected
Cost of equity 8.90% - 12.10% 10.50%
Tax rate 0.90% - 1.50% 1.20%
Cost of debt 4.50% - 7.00% 5.75%
WACC 8.4% - 11.5% 10.0%
WACC

MNTV WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.1 1.3
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.90% 12.10%
Tax rate 0.90% 1.50%
Debt/Equity ratio 0.13 0.13
Cost of debt 4.50% 7.00%
After-tax WACC 8.4% 11.5%
Selected WACC 10.0%

MNTV'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 MNTV:

cost_of_equity (10.50%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.1) + 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.