Mentice AB (MNTC.ST) WACC Analysis

As of May 27, 2025, Mentice AB (MNTC.ST) carries a Weighted Average Cost of Capital (WACC) of 6.3%. WACC reflects the blended rate Mentice AB must pay to both equity and debt holders.

Within that, the cost of equity is 5.0%, the cost of debt is 4.0%, and the effective tax rate is 33.7%.

Breakdown of WACC Components

• Long-term bond rate: 2.5% – 3.0%
• Equity market risk premium: 5.1% – 6.1%
• Adjusted beta: 0.38 – 0.6
• Additional risk adjustment: 0.5% – 1.0%
• Debt-to-equity ratio: 0.02

What It Means for Investors

With a selected WACC of 6.3%, Mentice AB must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.