MTHH.CO WACC - Weighted Average Cost of Capital
The WACC of MT Hoejgaard Holding A/S (MTHH.CO) is 7.2%.
| Range | Selected | |
| Cost of equity | 6.2% - 9.3% | 7.75% |
| Tax rate | 16.4% - 31.5% | 23.95% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.9% - 8.5% | 7.2% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.68 | 0.91 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.2% | 9.3% |
| Tax rate | 16.4% | 31.5% |
| Debt/Equity ratio | 0.16 | 0.16 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.9% | 8.5% |
| Selected WACC | 7.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| MTHH.CO | MT Hoejgaard Holding A/S | 0.16 | 0.42 | 0.37 |
| COST.L | Costain Group PLC | 0.07 | 0.89 | 0.85 |
| GFRD.L | Galliford Try Holdings PLC | 0.13 | 1.03 | 0.94 |
| GSJ.MC | Grupo Empresarial San Jose SA | 0.28 | 0.63 | 0.52 |
| MRK1T.TL | Merko Ehitus AS | 0.17 | 1.01 | 0.89 |
| NRC.OL | NRC Group ASA | 0.82 | 1.18 | 0.72 |
| PXM.WA | Polimex Mostostal SA | 0.13 | 1.18 | 1.07 |
| SRNKE B.ST | SERNEKE Group AB (publ) | 2.44 | 0.51 | 0.17 |
| SRV1V.HE | SRV Yhtiot Oyj | 1.55 | 0.37 | 0.17 |
| TFI.MI | Trevi Finanziaria Industriale SpA | 4.47 | 1.04 | 0.23 |
| Low | High | |
| Unlevered beta | 0.46 | 0.77 |
| Relevered beta | 0.52 | 0.87 |
| Adjusted relevered beta | 0.68 | 0.91 |
MTHH.CO'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 MTHH.CO:
cost_of_equity (7.75%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.68) + 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.