TMG.L WACC - Weighted Average Cost of Capital
The WACC of Mission Group PLC (TMG.L) is 7.1%.
| Range | Selected | |
| Cost of equity | 8.6% - 12.3% | 10.45% |
| Tax rate | 16.3% - 26.3% | 21.3% |
| Cost of debt | 5.2% - 7.6% | 6.4% |
| WACC | 6.0% - 8.2% | 7.1% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.77 | 1.04 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.6% | 12.3% |
| Tax rate | 16.3% | 26.3% |
| Debt/Equity ratio | 1.57 | 1.57 |
| Cost of debt | 5.2% | 7.6% |
| After-tax WACC | 6.0% | 8.2% |
| Selected WACC | 7.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| TMG.L | Mission Group PLC | 1.57 | 0.74 | 0.33 |
| ALP.PA | ADL Partner SA | 0.24 | 0.78 | 0.66 |
| APM.DE | Ad Pepper Media International NV | 0.02 | 0.36 | 0.35 |
| EDI.PA | Media 6 SA | 0.47 | -0.03 | -0.02 |
| HCO.PA | High Co SA | 0.09 | 0.72 | 0.68 |
| HOP.PA | Hopscotch Groupe SA | 1.08 | 1.26 | 0.68 |
| KCT.L | Kin and Carta PLC | 0.18 | -0.74 | -0.65 |
| OOUT.L | Ocean Outdoor Ltd | 0.44 | 1.02 | 0.76 |
| PEBB.L | Pebble Group PLC | 0.12 | -0.01 | -0.01 |
| TRAD.ST | TradeDoubler AB | 0.28 | 0.29 | 0.24 |
| Low | High | |
| Unlevered beta | 0.3 | 0.47 |
| Relevered beta | 0.66 | 1.06 |
| Adjusted relevered beta | 0.77 | 1.04 |
TMG.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 TMG.L:
cost_of_equity (10.45%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.77) + 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.