MOBA.ST WACC - Weighted Average Cost of Capital

The WACC of MOBA Network publ AB (MOBA.ST) is 20.3%.

The Cost of Equity of MOBA Network publ AB (MOBA.ST) is 16.55%.

The Cost of Debt of MOBA Network publ AB (MOBA.ST) is 30.65%.

	Range	Selected
Cost of equity	11.60% - 21.50%	16.55%
Tax rate	30.90% - 33.10%	32.00%
Cost of debt	19.50% - 41.80%	30.65%
WACC	13.3% - 27.4%	20.3%

WACC

MOBA.ST WACC calculation

Category	Low	High

Long-term bond rate	2.5%	3.0%
Equity market risk premium	5.1%	6.1%
Adjusted beta	1.78	2.95

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.60%	21.50%

Tax rate	30.90%	33.10%
Debt/Equity ratio	9.39	9.39
Cost of debt	19.50%	41.80%

After-tax WACC	13.3%	27.4%


Selected WACC	20.3%

MOBA.ST'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 MOBA.ST:

cost_of_equity (16.55%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (1.78) + 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.