MYX.AX WACC - Weighted Average Cost of Capital
The WACC of Mayne Pharma Group Ltd (MYX.AX) is 7.5%.
| Range | Selected | |
| Cost of equity | 6.7% - 8.7% | 7.7% |
| Tax rate | 19.6% - 24.1% | 21.85% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.5% - 8.4% | 7.5% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.53 | 0.61 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.7% | 8.7% |
| Tax rate | 19.6% | 24.1% |
| Debt/Equity ratio | 0.07 | 0.07 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.5% | 8.4% |
| Selected WACC | 7.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| MYX.AX | Mayne Pharma Group Ltd | 0.07 | 0.43 | 0.41 |
| 3705.TW | YungShin Global Holding Corp | 0.08 | -0.07 | -0.06 |
| 4577.T | Daito Pharmaceutical Co Ltd | 0.29 | 0.36 | 0.29 |
| AGH.AX | Althea Group Holdings Ltd | 0.33 | 0.48 | 0.38 |
| IHL.AX | Incannex Healthcare Ltd | 0 | 0.78 | 0.78 |
| MXC.AX | MGC Pharmaceuticals Ltd | 0.03 | 0.77 | 0.75 |
| PBP.AX | Probiotec Ltd | 0.36 | 0.56 | 0.44 |
| RNO.AX | Rhinomed Ltd | 0.75 | 0.41 | 0.26 |
| SOHO.JK | SOHO Global Health PT | 0 | 0.08 | 0.08 |
| VLS.AX | Vita Life Sciences Ltd | 0.01 | 0.2 | 0.19 |
| Low | High | |
| Unlevered beta | 0.28 | 0.39 |
| Relevered beta | 0.3 | 0.42 |
| Adjusted relevered beta | 0.53 | 0.61 |
MYX.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 MYX.AX:
cost_of_equity (7.70%) = risk_free_rate (4.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.53) + 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.