MTRN.TA WACC - Weighted Average Cost of Capital

The WACC of Maytronics Ltd (MTRN.TA) is 7.4%.

The Cost of Equity of Maytronics Ltd (MTRN.TA) is 13.10%.

The Cost of Debt of Maytronics Ltd (MTRN.TA) is 6.35%.

	Range	Selected
Cost of equity	9.90% - 16.30%	13.10%
Tax rate	14.90% - 15.30%	15.10%
Cost of debt	5.70% - 7.00%	6.35%
WACC	6.2% - 8.6%	7.4%

WACC

MTRN.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.83	1.47

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.90%	16.30%

Tax rate	14.90%	15.30%
Debt/Equity ratio	2.86	2.86
Cost of debt	5.70%	7.00%

After-tax WACC	6.2%	8.6%


Selected WACC	7.4%

MTRN.TA'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 MTRN.TA:

cost_of_equity (13.10%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.83) + 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.