The WACC of MaxCyte Inc (MXCT.L) is 6.7%.
| Range | Selected | |
| Cost of equity | 5.10% - 8.20% | 6.65% |
| Tax rate | 19.00% - 19.00% | 19.00% |
| Cost of debt | 7.00% - 12.00% | 9.50% |
| WACC | 5.2% - 8.2% | 6.7% |
| Category | Low | High |
| Long-term bond rate | 2.0% | 2.5% |
| Equity market risk premium | 5.3% | 6.3% |
| Adjusted beta | 0.5 | 0.75 |
| Additional risk adjustments | 0.5% | 1.0% |
| Cost of equity | 5.10% | 8.20% |
| Tax rate | 19.00% | 19.00% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 7.00% | 12.00% |
| After-tax WACC | 5.2% | 8.2% |
| Selected WACC | 6.7% | |
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 MXCT.L:
cost_of_equity (6.65%) = risk_free_rate (2.25%) + equity_risk_premium (5.80%) * adjusted_beta (0.5) + risk_adjustments (0.75%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.