MOTO.AT WACC - Weighted Average Cost of Capital

The WACC of Cars Motorcycles and Marine Engine Trade and Import Company SA (MOTO.AT) is 7.5%.

The Cost of Equity of Cars Motorcycles and Marine Engine Trade and Import Company SA (MOTO.AT) is 10.75%.

The Cost of Debt of Cars Motorcycles and Marine Engine Trade and Import Company SA (MOTO.AT) is 5.95%.

	Range	Selected
Cost of equity	8.60% - 12.90%	10.75%
Tax rate	25.70% - 26.20%	25.95%
Cost of debt	4.80% - 7.10%	5.95%
WACC	6.0% - 9.0%	7.5%

WACC

MOTO.AT WACC calculation

Category	Low	High

Long-term bond rate	3.3%	3.8%
Equity market risk premium	8.8%	9.8%
Adjusted beta	0.6	0.88

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.60%	12.90%

Tax rate	25.70%	26.20%
Debt/Equity ratio	1.06	1.06
Cost of debt	4.80%	7.10%

After-tax WACC	6.0%	9.0%


Selected WACC	7.5%

MOTO.AT'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 MOTO.AT:

cost_of_equity (10.75%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.6) + 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.