MHPC.L WACC - Weighted Average Cost of Capital
The WACC of Mhp Se (MHPC.L) is 9.0%.
| Range | Selected | |
| Cost of equity | 12.5% - 17.0% | 14.75% |
| Tax rate | 8.0% - 11.6% | 9.8% |
| Cost of debt | 7.6% - 8.4% | 8% |
| WACC | 8.3% - 9.7% | 9.0% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 5.5% | 6.5% |
| Adjusted beta | 1.55 | 1.85 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 12.5% | 17.0% |
| Tax rate | 8.0% | 11.6% |
| Debt/Equity ratio | 3.23 | 3.23 |
| Cost of debt | 7.6% | 8.4% |
| After-tax WACC | 8.3% | 9.7% |
| Selected WACC | 9.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| MHPC.L | Mhp Se | 3.23 | 1.26 | 0.32 |
| ATRAV.HE | Atria Oyj | 0.8 | 0.17 | 0.1 |
| BAKK.L | Bakkavor Group Plc | 0.29 | 0.47 | 0.37 |
| BANVT.IS | Banvit Bandirma Vitaminli Yem Sanayi AS | 0.09 | 1.67 | 1.55 |
| CWK.L | Cranswick PLC | 0.04 | 0.66 | 0.64 |
| GNC.L | Greencore Group PLC | 0.31 | 0.68 | 0.53 |
| HKSAV.HE | HKScan Oyj | 5.38 | -0.04 | -0.01 |
| LOTB.BR | Lotus Bakeries NV | 0.04 | 0.77 | 0.75 |
| PFD.L | Premier Foods PLC | 0.19 | 0.64 | 0.55 |
| ULUUN.IS | Ulusoy Un Sanayi ve Ticaret AS | 0.87 | 1.38 | 0.78 |
| Low | High | |
| Unlevered beta | 0.47 | 0.58 |
| Relevered beta | 1.82 | 2.27 |
| Adjusted relevered beta | 1.55 | 1.85 |
MHPC.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 MHPC.L:
cost_of_equity (14.75%) = risk_free_rate (4.25%) + equity_risk_premium (6.00%) * adjusted_beta (1.55) + 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.