MZA.WA WACC - Weighted Average Cost of Capital

The WACC of Muza SA (MZA.WA) is 12.1%.

The Cost of Equity of Muza SA (MZA.WA) is 12.70%.

The Cost of Debt of Muza SA (MZA.WA) is 5.85%.

	Range	Selected
Cost of equity	11.20% - 14.20%	12.70%
Tax rate	20.60% - 27.60%	24.10%
Cost of debt	5.60% - 6.10%	5.85%
WACC	10.7% - 13.5%	12.1%

WACC

MZA.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.9	1.05

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.20%	14.20%

Tax rate	20.60%	27.60%
Debt/Equity ratio	0.08	0.08
Cost of debt	5.60%	6.10%

After-tax WACC	10.7%	13.5%


Selected WACC	12.1%

MZA.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 MZA.WA:

cost_of_equity (12.70%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.9) + 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.