MPAC.L WACC - Weighted Average Cost of Capital

The WACC of MPAC Group PLC (MPAC.L) is 6.8%.

The Cost of Equity of MPAC Group PLC (MPAC.L) is 8.85%.

The Cost of Debt of MPAC Group PLC (MPAC.L) is 6.50%.

	Range	Selected
Cost of equity	7.60% - 10.10%	8.85%
Tax rate	34.90% - 49.10%	42.00%
Cost of debt	5.90% - 7.10%	6.50%
WACC	6.1% - 7.5%	6.8%

WACC

MPAC.L WACC calculation

Category	Low	High

Long-term bond rate	4.0%	4.5%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.6	0.74

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.60%	10.10%

Tax rate	34.90%	49.10%
Debt/Equity ratio	0.69	0.69
Cost of debt	5.90%	7.10%

After-tax WACC	6.1%	7.5%


Selected WACC	6.8%

MPAC.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 MPAC.L:

cost_of_equity (8.85%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.6) + 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.