MSRS.ME WACC - Weighted Average Cost of Capital

The WACC of MOESK PAO (MSRS.ME) is 16.3%.

The Cost of Equity of MOESK PAO (MSRS.ME) is 22.90%.

The Cost of Debt of MOESK PAO (MSRS.ME) is 13.00%.

	Range	Selected
Cost of equity	21.20% - 24.60%	22.90%
Tax rate	24.30% - 26.00%	25.15%
Cost of debt	8.50% - 17.50%	13.00%
WACC	13.7% - 18.8%	16.3%

WACC

MSRS.ME WACC calculation

Category	Low	High

Long-term bond rate	15.8%	16.3%
Equity market risk premium	11.7%	12.7%
Adjusted beta	0.46	0.62

Additional risk adjustments	0.0%	0.5%
Cost of equity	21.20%	24.60%

Tax rate	24.30%	26.00%
Debt/Equity ratio	1.02	1.02
Cost of debt	8.50%	17.50%

After-tax WACC	13.7%	18.8%


Selected WACC	16.3%

MSRS.ME'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 MSRS.ME:

cost_of_equity (22.90%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (0.46) + 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.