MCB
Metropolitan Bank Holding Corp
Price:  
65.61 
USD
Volume:  
135,576.00
United States | Banks
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

MCB WACC - Weighted Average Cost of Capital

The WACC of Metropolitan Bank Holding Corp (MCB) is 7.7%.

The Cost of Equity of Metropolitan Bank Holding Corp (MCB) is 9.20%.
The Cost of Debt of Metropolitan Bank Holding Corp (MCB) is 5.00%.

Range Selected
Cost of equity 8.00% - 10.40% 9.20%
Tax rate 31.70% - 32.10% 31.90%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.8% - 8.7% 7.7%
WACC

MCB WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.89 1
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.00% 10.40%
Tax rate 31.70% 32.10%
Debt/Equity ratio 0.34 0.34
Cost of debt 5.00% 5.00%
After-tax WACC 6.8% 8.7%
Selected WACC 7.7%

MCB'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:

cost_of_equity (9.20%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.89) + 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.