MOV.NZ WACC - Weighted Average Cost of Capital

The WACC of Move Logistics Group Ltd (MOV.NZ) is 6.9%.

The Cost of Equity of Move Logistics Group Ltd (MOV.NZ) is 33.10%.

The Cost of Debt of Move Logistics Group Ltd (MOV.NZ) is 4.50%.

	Range	Selected
Cost of equity	27.40% - 38.80%	33.10%
Tax rate	12.70% - 20.00%	16.35%
Cost of debt	4.00% - 5.00%	4.50%
WACC	6.0% - 7.7%	6.9%

WACC

MOV.NZ WACC calculation

Category	Low	High

Long-term bond rate	4.3%	4.8%
Equity market risk premium	5.1%	6.1%
Adjusted beta	4.52	5.49

Additional risk adjustments	0.0%	0.5%
Cost of equity	27.40%	38.80%

Tax rate	12.70%	20.00%
Debt/Equity ratio	8.4	8.4
Cost of debt	4.00%	5.00%

After-tax WACC	6.0%	7.7%


Selected WACC	6.9%

MOV.NZ'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 MOV.NZ:

cost_of_equity (33.10%) = risk_free_rate (4.55%) + equity_risk_premium (5.60%) * adjusted_beta (4.52) + 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.