MYE.AX WACC - Weighted Average Cost of Capital

The WACC of Mastermyne Group Ltd (MYE.AX) is 9.8%.

The Cost of Equity of Mastermyne Group Ltd (MYE.AX) is 10.20%.

The Cost of Debt of Mastermyne Group Ltd (MYE.AX) is 5.50%.

	Range	Selected
Cost of equity	8.40% - 12.00%	10.20%
Tax rate	27.20% - 33.40%	30.30%
Cost of debt	4.00% - 7.00%	5.50%
WACC	8.0% - 11.5%	9.8%

WACC

MYE.AX WACC calculation

Category	Low	High

Long-term bond rate	4.0%	4.5%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.85	1.14

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.40%	12.00%

Tax rate	27.20%	33.40%
Debt/Equity ratio	0.07	0.07
Cost of debt	4.00%	7.00%

After-tax WACC	8.0%	11.5%


Selected WACC	9.8%

MYE.AX'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 MYE.AX:

cost_of_equity (10.20%) = risk_free_rate (4.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.85) + 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.