MOTO.AT WACC - Weighted Average Cost of Capital

The WACC of Cars Motorcycles and Marine Engine Trade and Import Company SA (MOTO.AT) is 9.2%.

The Cost of Equity of Cars Motorcycles and Marine Engine Trade and Import Company SA (MOTO.AT) is 11.50%.

The Cost of Debt of Cars Motorcycles and Marine Engine Trade and Import Company SA (MOTO.AT) is 5.00%.

	Range	Selected
Cost of equity	8.90% - 14.10%	11.50%
Tax rate	23.40% - 25.50%	24.45%
Cost of debt	4.40% - 5.60%	5.00%
WACC	7.2% - 11.1%	9.2%

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	0.64	1

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.90%	14.10%

Tax rate	23.40%	25.50%
Debt/Equity ratio	0.43	0.43
Cost of debt	4.40%	5.60%

After-tax WACC	7.2%	11.1%


Selected WACC	9.2%

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 (11.50%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.64) + 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.