MOV.WA WACC - Weighted Average Cost of Capital

The WACC of Movie Games SA (MOV.WA) is 8.8%.

The Cost of Equity of Movie Games SA (MOV.WA) is 8.85%.

The Cost of Debt of Movie Games SA (MOV.WA) is 6.10%.

	Range	Selected
Cost of equity	7.90% - 9.80%	8.85%
Tax rate	14.80% - 19.70%	17.25%
Cost of debt	6.10% - 6.10%	6.10%
WACC	7.9% - 9.7%	8.8%

WACC

MOV.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.38	0.45

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.90%	9.80%

Tax rate	14.80%	19.70%
Debt/Equity ratio	0.01	0.01
Cost of debt	6.10%	6.10%

After-tax WACC	7.9%	9.7%


Selected WACC	8.8%

MOV.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 MOV.WA:

cost_of_equity (8.85%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.38) + 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.