MTRX.TA WACC - Weighted Average Cost of Capital

The WACC of Matrix IT Ltd (MTRX.TA) is 12.5%.

The Cost of Equity of Matrix IT Ltd (MTRX.TA) is 13.75%.

The Cost of Debt of Matrix IT Ltd (MTRX.TA) is 4.90%.

	Range	Selected
Cost of equity	11.40% - 16.10%	13.75%
Tax rate	22.90% - 23.50%	23.20%
Cost of debt	4.00% - 5.80%	4.90%
WACC	10.3% - 14.6%	12.5%

WACC

MTRX.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	1.08	1.44

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.40%	16.10%

Tax rate	22.90%	23.50%
Debt/Equity ratio	0.15	0.15
Cost of debt	4.00%	5.80%

After-tax WACC	10.3%	14.6%


Selected WACC	12.5%

MTRX.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 MTRX.TA:

cost_of_equity (13.75%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (1.08) + 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.