The WACC of Mirion Technologies Inc (MIR) is 11.3%.
Range | Selected | |
Cost of equity | 9.9% - 12.5% | 11.2% |
Tax rate | 6.1% - 6.9% | 6.5% |
Cost of debt | 5.2% - 20.9% | 13.05% |
WACC | 9.2% - 13.4% | 11.3% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 1.3 | 1.37 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 9.9% | 12.5% |
Tax rate | 6.1% | 6.9% |
Debt/Equity ratio | 0.14 | 0.14 |
Cost of debt | 5.2% | 20.9% |
After-tax WACC | 9.2% | 13.4% |
Selected WACC | 11.3% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
MIR | Mirion Technologies Inc | 0.14 | 1.54 | 1.35 |
KEYS | Keysight Technologies Inc | 0.06 | 1.63 | 1.54 |
NATI | National Instruments Corp | 0.07 | 0.97 | 0.91 |
NOVT | Novanta Inc | 0.09 | 1.53 | 1.41 |
TDY | Teledyne Technologies Inc | 0.11 | 0.91 | 0.83 |
TRMB | Trimble Inc | 0.07 | 1.45 | 1.36 |
VNT | Vontier Corp | 0.38 | 1.32 | 0.98 |
ZBRA | Zebra Technologies Corp | 0.13 | 1.58 | 1.41 |
Low | High | |
Unlevered beta | 1.28 | 1.37 |
Relevered beta | 1.45 | 1.55 |
Adjusted relevered beta | 1.3 | 1.37 |
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 MIR:
cost_of_equity (11.20%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.3) + 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.