MOJ.WA WACC - Weighted Average Cost of Capital

The WACC of Moj SA (MOJ.WA) is 7.8%.

The Cost of Equity of Moj SA (MOJ.WA) is 10.65%.

The Cost of Debt of Moj SA (MOJ.WA) is 7.65%.

	Range	Selected
Cost of equity	9.20% - 12.10%	10.65%
Tax rate	21.20% - 22.00%	21.60%
Cost of debt	6.20% - 9.10%	7.65%
WACC	6.6% - 9.0%	7.8%

WACC

MOJ.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.58	0.76

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.20%	12.10%

Tax rate	21.20%	22.00%
Debt/Equity ratio	1.59	1.59
Cost of debt	6.20%	9.10%

After-tax WACC	6.6%	9.0%


Selected WACC	7.8%

MOJ.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 MOJ.WA:

cost_of_equity (10.65%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.58) + 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.