MTHH.CO
MT Hoejgaard Holding A/S
Price:  
387.5 
DKK
Volume:  
9,401
Denmark | Construction & Engineering

MTHH.CO WACC - Weighted Average Cost of Capital

The WACC of MT Hoejgaard Holding A/S (MTHH.CO) is 7.2%.

The Cost of Equity of MT Hoejgaard Holding A/S (MTHH.CO) is 7.75%.
The Cost of Debt of MT Hoejgaard Holding A/S (MTHH.CO) is 5%.

RangeSelected
Cost of equity6.2% - 9.3%7.75%
Tax rate16.4% - 31.5%23.95%
Cost of debt5.0% - 5.0%5%
WACC5.9% - 8.5%7.2%
WACC

MTHH.CO WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium5.1%6.1%
Adjusted beta0.680.91
Additional risk adjustments0.0%0.5%
Cost of equity6.2%9.3%
Tax rate16.4%31.5%
Debt/Equity ratio
0.160.16
Cost of debt5.0%5.0%
After-tax WACC5.9%8.5%
Selected WACC7.2%

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.