Mitie Group PLC (MTO.L) WACC Analysis

As of June 6, 2025, Mitie Group PLC (MTO.L) carries a Weighted Average Cost of Capital (WACC) of 8.6%. WACC reflects the blended rate Mitie Group PLC must pay to both equity and debt holders.

Within that, the cost of equity is 8.0%, the cost of debt is 4.6%, and the effective tax rate is 15.2%.

Breakdown of WACC Components

• Long-term bond rate: 4.0% – 4.5%
• Equity market risk premium: 6.0% – 7.0%
• Adjusted beta: 0.68 – 0.83
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.17

What It Means for Investors

With a selected WACC of 8.6%, Mitie Group PLC must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a moderate financing cost structure.