The WACC of Mirada PLC (MIRA.L) is 5.4%.
| Range | Selected | |
| Cost of equity | 4.50% - 18.60% | 11.55% |
| Tax rate | 5.50% - 5.70% | 5.60% |
| Cost of debt | 4.00% - 7.00% | 5.50% |
| WACC | 3.8% - 7.1% | 5.4% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | -1.34 | 0.73 |
| Additional risk adjustments | 8.5% | 9.0% |
| Cost of equity | 4.50% | 18.60% |
| Tax rate | 5.50% | 5.70% |
| Debt/Equity ratio | 25.08 | 25.08 |
| Cost of debt | 4.00% | 7.00% |
| After-tax WACC | 3.8% | 7.1% |
| Selected WACC | 5.4% | |
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 MIRA.L:
cost_of_equity (11.55%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (-1.34) + risk_adjustments (8.75%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.