YAK.V WACC - Weighted Average Cost of Capital

The WACC of Mongolia Growth Group Ltd (YAK.V) is 16.5%.

The Cost of Equity of Mongolia Growth Group Ltd (YAK.V) is 7.10%.

The Cost of Debt of Mongolia Growth Group Ltd (YAK.V) is 28.10%.

	Range	Selected
Cost of equity	5.70% - 8.50%	7.10%
Tax rate	3.10% - 8.70%	5.90%
Cost of debt	7.00% - 49.20%	28.10%
WACC	6.3% - 26.7%	16.5%

WACC

YAK.V WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.36	0.6

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.70%	8.50%

Tax rate	3.10%	8.70%
Debt/Equity ratio	1	1
Cost of debt	7.00%	49.20%

After-tax WACC	6.3%	26.7%


Selected WACC	16.5%

YAK.V'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 YAK.V:

cost_of_equity (7.10%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.36) + 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.