MEI Pharma Inc (MEIP) WACC Analysis

As of June 10, 2025, MEI Pharma Inc (MEIP) carries a Weighted Average Cost of Capital (WACC) of 7.3%. WACC reflects the blended rate MEI Pharma Inc must pay to both equity and debt holders.

Within that, the cost of equity is 9.1%, the cost of debt is 5.0%, and the effective tax rate is 26.2%.

Breakdown of WACC Components

• Long-term bond rate: 3.9% – 4.4%
• Equity market risk premium: 4.6% – 5.6%
• Adjusted beta: 1.14 – 1.38
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 1

What It Means for Investors

With a selected WACC of 7.3%, MEI Pharma Inc must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.