MSP.WA WACC - Weighted Average Cost of Capital
The WACC of Mostostal Plock SA (MSP.WA) is 10.4%.
| Range | Selected | |
| Cost of equity | 8.1% - 12.0% | 10.05% |
| Tax rate | 9.3% - 14.6% | 11.95% |
| Cost of debt | 7.0% - 21.1% | 14.05% |
| WACC | 7.8% - 12.9% | 10.4% |
| Category | Low | High |
| Long-term bond rate | 5.5% | 6.0% |
| Equity market risk premium | 6.3% | 7.3% |
| Adjusted beta | 0.41 | 0.74 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.1% | 12.0% |
| Tax rate | 9.3% | 14.6% |
| Debt/Equity ratio | 0.19 | 0.19 |
| Cost of debt | 7.0% | 21.1% |
| After-tax WACC | 7.8% | 12.9% |
| Selected WACC | 10.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| MSP.WA | Mostostal Plock SA | 0.19 | 0.2 | 0.17 |
| ATR.WA | Atrem SA | 0.05 | 0.63 | 0.6 |
| BTX.WA | Forbuild SA | 0.05 | 0 | 0 |
| EBX.WA | Ekobox SA | 0.02 | 1.18 | 1.16 |
| EKTER.AT | Ekter SA | 0.26 | 1.17 | 0.94 |
| ENP.WA | Energoaparatura SA | 0.01 | -0.11 | -0.11 |
| ORGE.IS | Orge Enerji Elektrik Taahhut AS | 0.14 | 0.85 | 0.75 |
| SMJ.L | J Smart & Co (Contractors) PLC | 0.12 | 0.53 | 0.48 |
| TOS.WA | Tamex Obiekty Sportowe SA | 0.08 | -0.39 | -0.36 |
| VTL.WA | Vistal Gdynia SA w restrukturyzacji | 1.49 | 0 | 0 |
| Low | High | |
| Unlevered beta | 0.1 | 0.53 |
| Relevered beta | 0.12 | 0.61 |
| Adjusted relevered beta | 0.41 | 0.74 |
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 (10.05%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.41) + 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.