MSHOP.AT WACC - Weighted Average Cost of Capital

The WACC of Mediterra SA (MSHOP.AT) is 9.1%.

The Cost of Equity of Mediterra SA (MSHOP.AT) is 10.15%.

The Cost of Debt of Mediterra SA (MSHOP.AT) is 5.95%.

	Range	Selected
Cost of equity	8.70% - 11.60%	10.15%
Tax rate	26.60% - 27.20%	26.90%
Cost of debt	5.80% - 6.10%	5.95%
WACC	7.9% - 10.2%	9.1%

WACC

MSHOP.AT WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	11.0%	12.0%
Adjusted beta	0.44	0.56

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.70%	11.60%

Tax rate	26.60%	27.20%
Debt/Equity ratio	0.23	0.23
Cost of debt	5.80%	6.10%

After-tax WACC	7.9%	10.2%


Selected WACC	9.1%

MSHOP.AT'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 MSHOP.AT:

cost_of_equity (10.15%) = risk_free_rate (4.15%) + equity_risk_premium (11.50%) * adjusted_beta (0.44) + 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.