MOS.V WACC - Weighted Average Cost of Capital
The WACC of Mobi724 Global Solutions Inc (MOS.V) is 6.0%.
| Range | Selected | |
| Cost of equity | 8.8% - 13.4% | 11.1% |
| Tax rate | 0.1% - 0.8% | 0.45% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.2% - 6.7% | 6.0% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.97 | 1.41 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.8% | 13.4% |
| Tax rate | 0.1% | 0.8% |
| Debt/Equity ratio | 2.95 | 2.95 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.2% | 6.7% |
| Selected WACC | 6.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| MOS.V | Mobi724 Global Solutions Inc | 2.95 | 1.12 | 0.28 |
| ALYI | Alternet Systems Inc | 3.69 | 0.86 | 0.18 |
| BR | Broadridge Financial Solutions Inc | 0.12 | 0.5 | 0.45 |
| CNDT | Conduent Inc | 1.41 | 0.91 | 0.38 |
| IBEX | Ibex Ltd | 0 | 0.69 | 0.69 |
| INX.V | Intouch Insight Ltd | 0.25 | 1.89 | 1.51 |
| PRTH | Priority Technology Holdings Inc | 1.36 | 1.61 | 0.68 |
| TTEC | TTEC Holdings Inc | 3.95 | -0.26 | -0.05 |
| SCGL.L | Sealand Capital Galaxy Ltd | 0.01 | -0.84 | -0.83 |
| Low | High | |
| Unlevered beta | 0.3 | 0.43 |
| Relevered beta | 0.96 | 1.61 |
| Adjusted relevered beta | 0.97 | 1.41 |
MOS.V'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 MOS.V:
cost_of_equity (11.10%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.97) + 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.