MCKS.L WACC - Weighted Average Cost of Capital
The WACC of McKay Securities PLC (MCKS.L) is 6.4%.
| Range | Selected | |
| Cost of equity | 6.5% - 8.6% | 7.55% |
| Tax rate | 19.0% - 19.0% | 19% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 5.3% - 7.6% | 6.4% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 5.3% | 6.3% |
| Adjusted beta | 0.66 | 0.74 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.5% | 8.6% |
| Tax rate | 19.0% | 19.0% |
| Debt/Equity ratio | 0.56 | 0.56 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 5.3% | 7.6% |
| Selected WACC | 6.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| MCKS.L | McKay Securities PLC | 0.56 | 0.8 | 0.55 |
| ACAN.PA | Acanthe Developpement SE | 0.02 | 0.12 | 0.12 |
| ARM.MC | Arima Real Estate SOCIMI SA | 0.58 | 0.57 | 0.39 |
| BRIQ.AT | BriQ Properties REIC | 1.06 | 0.1 | 0.05 |
| CRES.MI | COIMA RES SpA SIIQ | 0.84 | 0.74 | 0.44 |
| FPN.PA | Fonciere Paris Nord SA | 0.19 | 0.21 | 0.18 |
| INEA.PA | Fonciere Inea SA | 1.66 | 0.11 | 0.05 |
| RGL.L | Regional REIT Ltd | 1.66 | 0.66 | 0.28 |
| VKGYO.IS | Vakif Gayrimenkul Yatirim Ortakligi AS | 0.23 | 1.14 | 0.96 |
| YLFG.MC | La Finca Global Assets Socimi SA | 2.69 | -0.04 | -0.01 |
| Low | High | |
| Unlevered beta | 0.16 | 0.32 |
| Relevered beta | 0.49 | 0.61 |
| Adjusted relevered beta | 0.66 | 0.74 |
MCKS.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 MCKS.L:
cost_of_equity (7.55%) = risk_free_rate (3.15%) + equity_risk_premium (5.80%) * adjusted_beta (0.66) + 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.