MATE.L WACC - Weighted Average Cost of Capital
The WACC of JPMorgan Multi-Asset Trust PLC (MATE.L) is 7.8%.
| Range | Selected | |
| Cost of equity | 9.8% - 12.7% | 11.25% |
| Tax rate | 4.2% - 5.0% | 4.6% |
| Cost of debt | 4.6% - 4.6% | 4.6% |
| WACC | 7.1% - 8.5% | 7.8% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.97 | 1.1 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.8% | 12.7% |
| Tax rate | 4.2% | 5.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 4.6% | 4.6% |
| After-tax WACC | 7.1% | 8.5% |
| Selected WACC | 7.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| MATE.L | JPMorgan Multi-Asset Trust PLC | 1.17 | 0.71 | 0.33 |
| AJG.L | Atlantis Japan Growth Fund Ltd | 0.04 | 0.67 | 0.65 |
| AJIT.L | Aberdeen Japan Investment Trust PLC | 0.13 | 0.54 | 0.48 |
| ARTL.L | Alpha Real Trust Ltd | 0.07 | 0.53 | 0.5 |
| ASCI.L | Aberdeen Smaller Companies Income Trust PLC | 0.13 | 1.37 | 1.22 |
| BERI.L | Blackrock Energy and Resources Income Trust PLC | 0.21 | 1.37 | 1.15 |
| MPLF.L | Marble Point Loan Financing Ltd | 0.39 | -0.16 | -0.12 |
| RMDL.L | RM Secured Direct Lending PLC | 0.2 | 0.51 | 0.42 |
| Low | High | |
| Unlevered beta | 0.47 | 0.53 |
| Relevered beta | 0.96 | 1.15 |
| Adjusted relevered beta | 0.97 | 1.1 |
MATE.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 MATE.L:
cost_of_equity (11.25%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.97) + 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.