MIN.L WACC - Weighted Average Cost of Capital
The WACC of Minoan Group PLC (MIN.L) is 6.7%.
| Range | Selected | |
| Cost of equity | 9.5% - 13.1% | 11.3% |
| Tax rate | 19.0% - 19.0% | 19% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.0% - 7.3% | 6.7% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.92 | 1.16 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.5% | 13.1% |
| Tax rate | 19.0% | 19.0% |
| Debt/Equity ratio | 1.76 | 1.76 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.0% | 7.3% |
| Selected WACC | 6.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| MIN.L | Minoan Group PLC | 1.76 | 2.24 | 0.92 |
| DHG.IR | Dalata Hotel Group PLC | 0.92 | 1.49 | 0.85 |
| GPA.LS | Imobiliaria Construtora Grao Para SA | 0.83 | -0.06 | -0.04 |
| IGV.MI | I Grandi Viaggi SpA | 0.07 | 0.51 | 0.49 |
| IHG.L | InterContinental Hotels Group PLC | 0.2 | 0.95 | 0.82 |
| INF.WA | Interferie SA | 0.37 | 0.58 | 0.44 |
| MARTI.IS | Marti Otel Isletmeleri AS | 4.84 | 1.23 | 0.25 |
| MLHOT.PA | Hotelim SA | 0.21 | -0.98 | -0.84 |
| OLYMP.AT | Technical Olympic SA | 0.14 | 0.62 | 0.56 |
| SSTY.L | Safestay PLC | 3.62 | -0.45 | -0.11 |
| ULAS.IS | Ulaslar Turizm Yatirimlari ve Dayanikli Tuketim Mallari Ticaret Pazarlama AS | 0.01 | 1.43 | 1.42 |
| Low | High | |
| Unlevered beta | 0.44 | 0.56 |
| Relevered beta | 0.88 | 1.24 |
| Adjusted relevered beta | 0.92 | 1.16 |
MIN.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 MIN.L:
cost_of_equity (11.30%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.92) + 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.