MXC.WA WACC - Weighted Average Cost of Capital
The WACC of MaxCom SA (MXC.WA) is 12.1%.
| Range | Selected | |
| Cost of equity | 9.6% - 12.2% | 10.9% |
| Tax rate | 20.8% - 24.4% | 22.6% |
| Cost of debt | 11.7% - 22.5% | 17.1% |
| WACC | 9.4% - 14.7% | 12.1% |
| Category | Low | High |
| Long-term bond rate | 5.5% | 6.0% |
| Equity market risk premium | 6.3% | 7.3% |
| Adjusted beta | 0.65 | 0.77 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.6% | 12.2% |
| Tax rate | 20.8% | 24.4% |
| Debt/Equity ratio | 1.14 | 1.14 |
| Cost of debt | 11.7% | 22.5% |
| After-tax WACC | 9.4% | 14.7% |
| Selected WACC | 12.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| MXC.WA | MaxCom SA | 1.14 | 0.18 | 0.1 |
| ALJXR.PA | Archos SA | 0.57 | 0.07 | 0.05 |
| ALTVO.PA | Evolis SA | 0.01 | 0.39 | 0.39 |
| CIB.PA | Cibox Inter@ctive SA | 0.74 | 1.15 | 0.73 |
| CNC.L | Concurrent Technologies PLC | 0 | 1.63 | 1.63 |
| DORO.ST | Doro AB | 0.02 | 0.27 | 0.26 |
| EGR.PA | Evergreen SA | 1.64 | 0.16 | 0.07 |
| PKART.IS | Plastikkart Akilli Kart Iletisim Sistemleri Sanayi ve Ticaret AS | 0 | 1.01 | 1.01 |
| QDT.PA | Quadient SA | 1.95 | 0.61 | 0.24 |
| OTIVF | On Track Innovations Ltd | 1.95 | 0.81 | 0.32 |
| Low | High | |
| Unlevered beta | 0.25 | 0.35 |
| Relevered beta | 0.48 | 0.66 |
| Adjusted relevered beta | 0.65 | 0.77 |
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 (10.90%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.65) + 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.