MOZ.AX WACC - Weighted Average Cost of Capital

The WACC of Mosaic Brands Ltd (MOZ.AX) is 6.1%.

The Cost of Equity of Mosaic Brands Ltd (MOZ.AX) is 46.35%.

The Cost of Debt of Mosaic Brands Ltd (MOZ.AX) is 5.50%.

	Range	Selected
Cost of equity	36.60% - 56.10%	46.35%
Tax rate	30.00% - 30.00%	30.00%
Cost of debt	4.00% - 7.00%	5.50%
WACC	4.6% - 7.6%	6.1%

WACC

MOZ.AX WACC calculation

Category	Low	High

Long-term bond rate	4.0%	4.5%
Equity market risk premium	5.1%	6.1%
Adjusted beta	6.39	8.37

Additional risk adjustments	0.0%	0.5%
Cost of equity	36.60%	56.10%

Tax rate	30.00%	30.00%
Debt/Equity ratio	17.95	17.95
Cost of debt	4.00%	7.00%

After-tax WACC	4.6%	7.6%


Selected WACC	6.1%

MOZ.AX'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 MOZ.AX:

cost_of_equity (46.35%) = risk_free_rate (4.25%) + equity_risk_premium (5.60%) * adjusted_beta (6.39) + 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.