MSP.WA WACC - Weighted Average Cost of Capital

The WACC of Mostostal Plock SA (MSP.WA) is 12.9%.

The Cost of Equity of Mostostal Plock SA (MSP.WA) is 11.05%.

The Cost of Debt of Mostostal Plock SA (MSP.WA) is 27.20%.

	Range	Selected
Cost of equity	8.90% - 13.20%	11.05%
Tax rate	9.30% - 15.60%	12.45%
Cost of debt	6.60% - 47.80%	27.20%
WACC	8.5% - 17.3%	12.9%

WACC

MSP.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.54	0.92

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.90%	13.20%

Tax rate	9.30%	15.60%
Debt/Equity ratio	0.18	0.18
Cost of debt	6.60%	47.80%

After-tax WACC	8.5%	17.3%


Selected WACC	12.9%

MSP.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 MSP.WA:

cost_of_equity (11.05%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.54) + 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.