MPLF.L WACC - Weighted Average Cost of Capital
The WACC of Marble Point Loan Financing Ltd (MPLF.L) is 8.8%.
| Range | Selected | |
| Cost of equity | 7.9% - 10.0% | 8.95% |
| Tax rate | 0.0% - 0.0% | 0% |
| Cost of debt | 7.3% - 9.2% | 8.25% |
| WACC | 7.7% - 9.8% | 8.8% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 5.5% | 6.5% |
| Adjusted beta | 0.71 | 0.78 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.9% | 10.0% |
| Tax rate | 0.0% | 0.0% |
| Debt/Equity ratio | 0.39 | 0.39 |
| Cost of debt | 7.3% | 9.2% |
| After-tax WACC | 7.7% | 9.8% |
| Selected WACC | 8.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| MPLF.L | Marble Point Loan Financing Ltd | 0.39 | -0.16 | -0.12 |
| AJG.L | Atlantis Japan Growth Fund Ltd | 0.04 | 0.67 | 0.65 |
| AJIT.L | Aberdeen Japan Investment Trust PLC | 0.13 | 0.54 | 0.48 |
| ARTL.L | Alpha Real Trust Ltd | 0.07 | 0.53 | 0.5 |
| BERI.L | Blackrock Energy and Resources Income Trust PLC | 0.2 | 1.37 | 1.14 |
| DUKE.L | Duke Royalty Ltd | 0.6 | 0.55 | 0.35 |
| EJFI.L | EJF Investments Ltd | 0.23 | 0.05 | 0.04 |
| RMDL.L | RM Secured Direct Lending PLC | 0.2 | 0.51 | 0.42 |
| Low | High | |
| Unlevered beta | 0.41 | 0.48 |
| Relevered beta | 0.57 | 0.67 |
| Adjusted relevered beta | 0.71 | 0.78 |
MPLF.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 MPLF.L:
cost_of_equity (8.95%) = risk_free_rate (4.25%) + equity_risk_premium (6.00%) * adjusted_beta (0.71) + 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.