MIG.L WACC - Weighted Average Cost of Capital
The WACC of Mobeus Income & Growth 2 VCT PLC (MIG.L) is 9.5%.
| Range | Selected | |
| Cost of equity | 13.3% - 16.5% | 14.9% |
| Tax rate | 19.0% - 19.0% | 19% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.7% - 10.3% | 9.5% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 1.55 | 1.65 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 13.3% | 16.5% |
| Tax rate | 19.0% | 19.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.7% | 10.3% |
| Selected WACC | 9.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| MIG.L | Mobeus Income & Growth 2 VCT PLC | 1.08 | 0.38 | 0.2 |
| ASCI.L | Aberdeen Smaller Companies Income Trust PLC | 0.13 | 1.37 | 1.24 |
| JGC.L | Jupiter Green Investment Trust PLC | 0.06 | 0.9 | 0.86 |
| Low | High | |
| Unlevered beta | 0.73 | 0.93 |
| Relevered beta | 1.82 | 1.97 |
| Adjusted relevered beta | 1.55 | 1.65 |
MIG.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 MIG.L:
cost_of_equity (14.90%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * 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.