MVP.WA WACC - Weighted Average Cost of Capital

The WACC of Marvipol Development SA (MVP.WA) is 8.1%.

The Cost of Equity of Marvipol Development SA (MVP.WA) is 10.90%.

The Cost of Debt of Marvipol Development SA (MVP.WA) is 7.80%.

	Range	Selected
Cost of equity	9.00% - 12.80%	10.90%
Tax rate	19.20% - 19.40%	19.30%
Cost of debt	7.00% - 8.60%	7.80%
WACC	7.0% - 9.3%	8.1%

WACC

MVP.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.56	0.86

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.00%	12.80%

Tax rate	19.20%	19.40%
Debt/Equity ratio	1.52	1.52
Cost of debt	7.00%	8.60%

After-tax WACC	7.0%	9.3%


Selected WACC	8.1%

MVP.WA'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 MVP.WA:

cost_of_equity (10.90%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.56) + 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.