Marshall Motor Holdings PLC (MMH.L) WACC Analysis

As of June 4, 2025, Marshall Motor Holdings PLC (MMH.L) carries a Weighted Average Cost of Capital (WACC) of 11.0%. WACC reflects the blended rate Marshall Motor Holdings PLC must pay to both equity and debt holders.

Within that, the cost of equity is 7.7%, the cost of debt is 4.7%, and the effective tax rate is 23.0%.

Breakdown of WACC Components

• Long-term bond rate: 2.9% – 3.4%
• Equity market risk premium: 5.3% – 6.3%
• Adjusted beta: 0.89 – 1.05
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.32

What It Means for Investors

With a selected WACC of 11.0%, Marshall Motor Holdings PLC must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a relatively high financing requirement.