MIME
Mimecast Ltd
Price:  
79.92 
USD
Volume:  
5,633,820.00
United Kingdom | Software
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

MIME WACC - Weighted Average Cost of Capital

The WACC of Mimecast Ltd (MIME) is 7.9%.

The Cost of Equity of Mimecast Ltd (MIME) is 7.95%.
The Cost of Debt of Mimecast Ltd (MIME) is 6.90%.

Range Selected
Cost of equity 6.90% - 9.00% 7.95%
Tax rate 27.00% - 27.00% 27.00%
Cost of debt 4.00% - 9.80% 6.90%
WACC 6.9% - 9.0% 7.9%
WACC

MIME WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 4.2% 5.2%
Adjusted beta 0.89 0.92
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.90% 9.00%
Tax rate 27.00% 27.00%
Debt/Equity ratio 0.02 0.02
Cost of debt 4.00% 9.80%
After-tax WACC 6.9% 9.0%
Selected WACC 7.9%

MIME'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 MIME:

cost_of_equity (7.95%) = risk_free_rate (3.45%) + equity_risk_premium (4.70%) * 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.