MXC.WA WACC - Weighted Average Cost of Capital

The WACC of MaxCom SA (MXC.WA) is 11.4%.

The Cost of Equity of MaxCom SA (MXC.WA) is 13.50%.

The Cost of Debt of MaxCom SA (MXC.WA) is 12.40%.

	Range	Selected
Cost of equity	11.20% - 15.80%	13.50%
Tax rate	22.60% - 24.70%	23.65%
Cost of debt	7.50% - 17.30%	12.40%
WACC	8.4% - 14.4%	11.4%

WACC

MXC.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.89	1.27

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.20%	15.80%

Tax rate	22.60%	24.70%
Debt/Equity ratio	1.06	1.06
Cost of debt	7.50%	17.30%

After-tax WACC	8.4%	14.4%


Selected WACC	11.4%

MXC.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 MXC.WA:

cost_of_equity (13.50%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.89) + 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.