MTRN.TA WACC - Weighted Average Cost of Capital

The WACC of Maytronics Ltd (MTRN.TA) is 13.3%.

The Cost of Equity of Maytronics Ltd (MTRN.TA) is 14.40%.

The Cost of Debt of Maytronics Ltd (MTRN.TA) is 14.90%.

	Range	Selected
Cost of equity	11.80% - 17.00%	14.40%
Tax rate	14.30% - 14.80%	14.55%
Cost of debt	5.00% - 24.80%	14.90%
WACC	6.8% - 19.8%	13.3%

WACC

MTRN.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	1.13	1.57

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.80%	17.00%

Tax rate	14.30%	14.80%
Debt/Equity ratio	1.99	1.99
Cost of debt	5.00%	24.80%

After-tax WACC	6.8%	19.8%


Selected WACC	13.3%

MTRN.TA'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 MTRN.TA:

cost_of_equity (14.40%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (1.13) + 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.