The WACC of Bitros Holding SA (MPITR.AT) is 4.7%.
| Range | Selected | |
| Cost of equity | 13.90% - 26.00% | 19.95% |
| Tax rate | 3.90% - 6.60% | 5.25% |
| Cost of debt | 4.00% - 4.50% | 4.25% |
| WACC | 4.3% - 5.1% | 4.7% |
| Category | Low | High |
| Long-term bond rate | 3.3% | 3.8% |
| Equity market risk premium | 8.8% | 9.8% |
| Adjusted beta | 1.21 | 2.22 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 13.90% | 26.00% |
| Tax rate | 3.90% | 6.60% |
| Debt/Equity ratio | 23.14 | 23.14 |
| Cost of debt | 4.00% | 4.50% |
| After-tax WACC | 4.3% | 5.1% |
| Selected WACC | 4.7% | |
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 MPITR.AT:
cost_of_equity (19.95%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (1.21) + 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.