MANO.L WACC - Weighted Average Cost of Capital

The WACC of Manolete Partners PLC (MANO.L) is 8.9%.

The Cost of Equity of Manolete Partners PLC (MANO.L) is 8.85%.

The Cost of Debt of Manolete Partners PLC (MANO.L) is 10.80%.

	Range	Selected
Cost of equity	7.80% - 9.90%	8.85%
Tax rate	18.40% - 18.90%	18.65%
Cost of debt	5.80% - 15.80%	10.80%
WACC	7.0% - 10.7%	8.9%

WACC

MANO.L WACC calculation

Category	Low	High

Long-term bond rate	4.0%	4.5%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.64	0.71

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.80%	9.90%

Tax rate	18.40%	18.90%
Debt/Equity ratio	0.35	0.35
Cost of debt	5.80%	15.80%

After-tax WACC	7.0%	10.7%


Selected WACC	8.9%

MANO.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 MANO.L:

cost_of_equity (8.85%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.64) + 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.