The WACC of MRSK Yuga PAO (MRKY.ME) is 17.5%.
Range | Selected | |
Cost of equity | 21.60% - 23.90% | 22.75% |
Tax rate | 26.30% - 27.30% | 26.80% |
Cost of debt | 11.80% - 27.60% | 19.70% |
WACC | 13.4% - 21.5% | 17.5% |
Category | Low | High |
Long-term bond rate | 15.8% | 16.3% |
Equity market risk premium | 11.7% | 12.7% |
Adjusted beta | 0.5 | 0.56 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 21.60% | 23.90% |
Tax rate | 26.30% | 27.30% |
Debt/Equity ratio | 1.73 | 1.73 |
Cost of debt | 11.80% | 27.60% |
After-tax WACC | 13.4% | 21.5% |
Selected WACC | 17.5% | |
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 MRKY.ME:
cost_of_equity (22.75%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (0.5) + 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.