TMG.L
Mission Group PLC
Price:  
22.50 
GBP
Volume:  
128,835.00
United Kingdom | Media
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TMG.L WACC - Weighted Average Cost of Capital

The WACC of Mission Group PLC (TMG.L) is 6.9%.

The Cost of Equity of Mission Group PLC (TMG.L) is 10.35%.
The Cost of Debt of Mission Group PLC (TMG.L) is 6.40%.

Range Selected
Cost of equity 8.70% - 12.00% 10.35%
Tax rate 16.30% - 26.30% 21.30%
Cost of debt 5.20% - 7.60% 6.40%
WACC 5.9% - 7.9% 6.9%
WACC

TMG.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.78 1.01
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.70% 12.00%
Tax rate 16.30% 26.30%
Debt/Equity ratio 1.78 1.78
Cost of debt 5.20% 7.60%
After-tax WACC 5.9% 7.9%
Selected WACC 6.9%

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 (10.35%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.78) + 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.