MCB.L
McBride PLC
Price:  
146.60 
GBP
Volume:  
468,658.00
United Kingdom | Household Products
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MCB.L WACC - Weighted Average Cost of Capital

The WACC of McBride PLC (MCB.L) is 7.4%.

The Cost of Equity of McBride PLC (MCB.L) is 9.65%.
The Cost of Debt of McBride PLC (MCB.L) is 4.65%.

Range Selected
Cost of equity 8.30% - 11.00% 9.65%
Tax rate 26.60% - 29.80% 28.20%
Cost of debt 4.40% - 4.90% 4.65%
WACC 6.5% - 8.3% 7.4%
WACC

MCB.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.73 0.86
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.30% 11.00%
Tax rate 26.60% 29.80%
Debt/Equity ratio 0.57 0.57
Cost of debt 4.40% 4.90%
After-tax WACC 6.5% 8.3%
Selected WACC 7.4%

MCB.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 MCB.L:

cost_of_equity (9.65%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.73) + 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.