MPE.L
M P Evans Group PLC
Price:  
1,300.00 
GBP
Volume:  
17,891.00
United Kingdom | Food Products
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MPE.L WACC - Weighted Average Cost of Capital

The WACC of M P Evans Group PLC (MPE.L) is 7.7%.

The Cost of Equity of M P Evans Group PLC (MPE.L) is 7.90%.
The Cost of Debt of M P Evans Group PLC (MPE.L) is 4.85%.

Range Selected
Cost of equity 6.90% - 8.90% 7.90%
Tax rate 23.30% - 24.70% 24.00%
Cost of debt 4.60% - 5.10% 4.85%
WACC 6.8% - 8.7% 7.7%
WACC

MPE.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.49 0.55
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.90% 8.90%
Tax rate 23.30% 24.70%
Debt/Equity ratio 0.04 0.04
Cost of debt 4.60% 5.10%
After-tax WACC 6.8% 8.7%
Selected WACC 7.7%

MPE.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 MPE.L:

cost_of_equity (7.90%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.49) + 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.