MATW
Matthews International Corp
Price:  
19.84 
USD
Volume:  
285,401.00
United States | Commercial Services & Supplies
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MATW WACC - Weighted Average Cost of Capital

The WACC of Matthews International Corp (MATW) is 5.8%.

The Cost of Equity of Matthews International Corp (MATW) is 6.70%.
The Cost of Debt of Matthews International Corp (MATW) is 5.85%.

Range Selected
Cost of equity 5.50% - 7.90% 6.70%
Tax rate 10.40% - 15.60% 13.00%
Cost of debt 4.70% - 7.00% 5.85%
WACC 4.8% - 6.8% 5.8%
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 0.35 0.53
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.50% 7.90%
Tax rate 10.40% 15.60%
Debt/Equity ratio 1.26 1.26
Cost of debt 4.70% 7.00%
After-tax WACC 4.8% 6.8%
Selected WACC 5.8%

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 (6.70%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.35) + 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.