MON.WA WACC - Weighted Average Cost of Capital

The WACC of Monnari Trade SA (MON.WA) is 10.2%.

The Cost of Equity of Monnari Trade SA (MON.WA) is 10.60%.

The Cost of Debt of Monnari Trade SA (MON.WA) is 5.20%.

	Range	Selected
Cost of equity	8.80% - 12.40%	10.60%
Tax rate	10.90% - 15.60%	13.25%
Cost of debt	4.00% - 6.40%	5.20%
WACC	8.4% - 11.9%	10.2%

WACC

MON.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.52	0.81

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.80%	12.40%

Tax rate	10.90%	15.60%
Debt/Equity ratio	0.08	0.08
Cost of debt	4.00%	6.40%

After-tax WACC	8.4%	11.9%


Selected WACC	10.2%

MON.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 MON.WA:

cost_of_equity (10.60%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.52) + 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.