MACF.L
Macfarlane Group PLC
Price:  
101.50 
GBP
Volume:  
172,655.00
United Kingdom | Containers & Packaging
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

MACF.L WACC - Weighted Average Cost of Capital

The WACC of Macfarlane Group PLC (MACF.L) is 8.2%.

The Cost of Equity of Macfarlane Group PLC (MACF.L) is 9.80%.
The Cost of Debt of Macfarlane Group PLC (MACF.L) is 4.95%.

Range Selected
Cost of equity 7.20% - 12.40% 9.80%
Tax rate 24.10% - 25.90% 25.00%
Cost of debt 4.90% - 5.00% 4.95%
WACC 6.3% - 10.1% 8.2%
WACC

MACF.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.53 1.06
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.20% 12.40%
Tax rate 24.10% 25.90%
Debt/Equity ratio 0.36 0.36
Cost of debt 4.90% 5.00%
After-tax WACC 6.3% 10.1%
Selected WACC 8.2%

MACF.L'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 MACF.L:

cost_of_equity (9.80%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.53) + 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.