MCFE
Mcafee Corp
Price:  
25.99 
USD
Volume:  
9,143,160.00
United States | Software
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

MCFE WACC - Weighted Average Cost of Capital

The WACC of Mcafee Corp (MCFE) is 7.9%.

The Cost of Equity of Mcafee Corp (MCFE) is 8.80%.
The Cost of Debt of Mcafee Corp (MCFE) is 6.00%.

Range Selected
Cost of equity 7.60% - 10.00% 8.80%
Tax rate 12.90% - 31.60% 22.25%
Cost of debt 4.00% - 8.00% 6.00%
WACC 6.8% - 9.1% 7.9%
WACC

MCFE WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 4.2% 5.2%
Adjusted beta 1.05 1.11
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.60% 10.00%
Tax rate 12.90% 31.60%
Debt/Equity ratio 0.25 0.25
Cost of debt 4.00% 8.00%
After-tax WACC 6.8% 9.1%
Selected WACC 7.9%

MCFE'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 MCFE:

cost_of_equity (8.80%) = risk_free_rate (3.45%) + equity_risk_premium (4.70%) * adjusted_beta (1.05) + 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.