MATW WACC - Weighted Average Cost of Capital

The WACC of Matthews International Corp (MATW) is 10.6%.

The Cost of Equity of Matthews International Corp (MATW) is 11.10%.

The Cost of Debt of Matthews International Corp (MATW) is 14.70%.

	Range	Selected
Cost of equity	9.30% - 12.90%	11.10%
Tax rate	10.40% - 36.40%	23.40%
Cost of debt	5.50% - 23.90%	14.70%
WACC	7.3% - 13.9%	10.6%

WACC

MATW WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	4.6%	5.6%
Adjusted beta	1.19	1.43

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.30%	12.90%

Tax rate	10.40%	36.40%
Debt/Equity ratio	0.87	0.87
Cost of debt	5.50%	23.90%

After-tax WACC	7.3%	13.9%


Selected WACC	10.6%

MATW'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 MATW:

cost_of_equity (11.10%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.19) + 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.