MVP.WA WACC - Weighted Average Cost of Capital

The WACC of Marvipol Development SA (MVP.WA) is 9.9%.

The Cost of Equity of Marvipol Development SA (MVP.WA) is 9.95%.

The Cost of Debt of Marvipol Development SA (MVP.WA) is 12.15%.

	Range	Selected
Cost of equity	8.70% - 11.20%	9.95%
Tax rate	19.20% - 19.40%	19.30%
Cost of debt	7.00% - 17.30%	12.15%
WACC	6.7% - 13.0%	9.9%

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	0.51	0.64

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.70%	11.20%

Tax rate	19.20%	19.40%
Debt/Equity ratio	1.82	1.82
Cost of debt	7.00%	17.30%

After-tax WACC	6.7%	13.0%


Selected WACC	9.9%

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 (9.95%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.51) + 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.