MPX
Marine Products Corp
Price:  
8.41 
USD
Volume:  
31,022.00
United States | Leisure Products
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MPX WACC - Weighted Average Cost of Capital

The WACC of Marine Products Corp (MPX) is 6.9%.

The Cost of Equity of Marine Products Corp (MPX) is 9.90%.
The Cost of Debt of Marine Products Corp (MPX) is 5.00%.

Range Selected
Cost of equity 8.30% - 11.50% 9.90%
Tax rate 20.20% - 20.40% 20.30%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.1% - 7.7% 6.9%
WACC

MPX WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.96 1.18
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.30% 11.50%
Tax rate 20.20% 20.40%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 6.1% 7.7%
Selected WACC 6.9%

MPX'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 MPX:

cost_of_equity (9.90%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.96) + 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.