MIRI.L WACC - Weighted Average Cost of Capital
The WACC of Mirriad Advertising PLC (MIRI.L) is 8.6%.
| Range | Selected | |
| Cost of equity | 7.5% - 10.9% | 9.2% |
| Tax rate | 3.4% - 3.7% | 3.55% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 7.1% - 10.1% | 8.6% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.59 | 0.84 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.5% | 10.9% |
| Tax rate | 3.4% | 3.7% |
| Debt/Equity ratio | 0.14 | 0.14 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 7.1% | 10.1% |
| Selected WACC | 8.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| MIRI.L | Mirriad Advertising PLC | 1.04 | -1.08 | -0.54 |
| ASCL.L | Ascential PLC | 0.29 | 1.72 | 1.35 |
| FOUR.L | 4imprint Group PLC | 0 | 1.61 | 1.6 |
| HYVE.L | Hyve Group PLC | 0.33 | 0.27 | 0.21 |
| INF.L | Informa PLC | 0.34 | 1.54 | 1.16 |
| KCT.L | Kin and Carta PLC | 0.18 | -0.74 | -0.64 |
| PEBB.L | Pebble Group PLC | 0.08 | 0.1 | 0.09 |
| SFOR.L | S4 Capital PLC | 2.34 | 1.93 | 0.59 |
| WPP.L | WPP PLC | 1.16 | 0.92 | 0.43 |
| YOU.L | YouGov PLC | 0.57 | 1.22 | 0.79 |
| Low | High | |
| Unlevered beta | 0.34 | 0.67 |
| Relevered beta | 0.39 | 0.76 |
| Adjusted relevered beta | 0.59 | 0.84 |
MIRI.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 MIRI.L:
cost_of_equity (9.20%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.59) + 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.