The WACC of Bitros Holding SA (MPITR.AT) is 6.1%.
Range | Selected | |
Cost of equity | 19.00% - 33.80% | 26.40% |
Tax rate | 6.80% - 10.70% | 8.75% |
Cost of debt | 4.00% - 7.00% | 5.50% |
WACC | 4.5% - 7.6% | 6.1% |
Category | Low | High |
Long-term bond rate | 3.3% | 3.8% |
Equity market risk premium | 8.8% | 9.8% |
Adjusted beta | 1.79 | 3.02 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 19.00% | 33.80% |
Tax rate | 6.80% | 10.70% |
Debt/Equity ratio | 19.07 | 19.07 |
Cost of debt | 4.00% | 7.00% |
After-tax WACC | 4.5% | 7.6% |
Selected WACC | 6.1% | |
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 MPITR.AT:
cost_of_equity (26.40%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (1.79) + 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.