MTVX
APT Moto Vox Group Inc
Price:  
USD
Volume:  
1,783,160
United States | Manufacturing

MTVX WACC - Weighted Average Cost of Capital

The WACC of APT Moto Vox Group Inc (MTVX) is 3.7%.

The Cost of Equity of APT Moto Vox Group Inc (MTVX) is 69.65%.
The Cost of Debt of APT Moto Vox Group Inc (MTVX) is 5%.

RangeSelected
Cost of equity5.5% - 133.8%69.65%
Tax rate26.2% - 27.0%26.6%
Cost of debt5.0% - 5.0%5%
WACC3.7% - 3.7%3.7%
WACC

MTVX WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium4.6%5.6%
Adjusted beta0.3523.02
Additional risk adjustments0.0%0.5%
Cost of equity5.5%133.8%
Tax rate26.2%27.0%
Debt/Equity ratio
3112.263112.26
Cost of debt5.0%5.0%
After-tax WACC3.7%3.7%
Selected WACC3.7%

MTVX WACC - Detailed calculations of Beta

LowHigh
Unlevered beta-0.360.03
Relevered beta0.0333.87
Adjusted relevered beta0.3523.02

MTVX'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 MTVX:

cost_of_equity (69.65%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.35) + 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.