Morphic Ethical Equity FundASX:MEC -1.09%35 WACC % is 3.49% as of Jun. 25, 2026, which is 53% below its 10-year median of 7.39. GuruFocus rates ASX:MEC with a GF Score™ of 35/100 and a GF Value™ of A$0.78 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,656 Asset Management companies, Morphic Ethical Equity Fund ranks better than 81.82% on this metric.
As of today (2026-06-25), Morphic Ethical Equity Fund's weighted average cost of capital is 3.49%%. Morphic Ethical Equity Fund's ROIC % is 0.00% (calculated using TTM income statement data).
Morphic Ethical Equity Fund earns returns that do not match up to its cost of capital. It will destroy value as it grows.
For a comprehensive WACC calculation, please access the WACC Calculator.
Morphic Ethical Equity Fund (ASX:MEC) WACC % Explanation
Because it costs money to raise capital. A firm that generates higher ROIC % than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Morphic Ethical Equity Fund's weighted average cost of capital is 3.49%%. Morphic Ethical Equity Fund's ROIC % is 0.00% (calculated using TTM income statement data).
Morphic Ethical Equity Fund earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
1. GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding latest one-year semi-annual average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together.
For companies that report quarterly, GuruFocus combines all of the most recent year's quarterly debt data from the beginning of the year to the year-end and calculates the average.
For companies that report semi-annually, GuruFocus combines all of the most recent year's semi-annual debt data from the start of the year to the year-end and calculates the average.
For companies that report annually, GuruFocus combines the beginning and ending annual debt data from the most recent year and then calculates the average.
2. The WACC formula discussed above does not include Preferred Stock. Please adjust if preferred stock is considered.
3. (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
4. GuruFocus uses the latest TTM Interest Expense divided by the latest one-year semi-annual average debt to get the simplified cost of debt.
Related Terms
Morphic Ethical Equity Fund WACC % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Asset Management subindustry, Morphic Ethical Equity Fund's WACC %, along with its competitors' market caps and WACC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Morphic Ethical Equity Fund WACC % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Morphic Ethical Equity Fund's WACC % distribution charts can be found below:
* The bar in red indicates where Morphic Ethical Equity Fund's WACC % falls into.
The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. The WACC is commonly referred to as the firm's cost of capital. Generally speaking, a company's assets are financed by debt and equity. WACC is the average of the costs of these sources of financing, each of which is weighted by its respective use in the given situation. By taking a weighted average, we can see how much interest the company has to pay for every dollar it finances.
WACC
=
E
/
(E + D)
*
Cost of Equity
+
D
/
(E + D)
*
Cost of Debt
*
(1 - Tax Rate)
1. Weights:
Generally speaking, a company's assets are financed by debt and equity. We need to calculate the weight of equity and the weight of debt.
The market value of equity (E) is also called "Market Cap". As of today, Morphic Ethical Equity Fund's market capitalization (E) is A$41.079 Mil.
The market value of debt is typically difficult to calculate, therefore, GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding the latest one-year semi-annual average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Dec. 2025, Morphic Ethical Equity Fund's latest one-year semi-annual average Book Value of Debt (D) is A$0.994 Mil.
a) weight of equity = E / (E + D) = 41.079 / (41.079 + 0.994) = 0.9764
b) weight of debt = D / (E + D) = 0.994 / (41.079 + 0.994) = 0.0236
2. Cost of Equity:
GuruFocus uses Capital Asset Pricing Model (CAPM) to calculate the required rate of return. The formula is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
a) GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate. It is updated daily. The current risk-free rate is 4.99%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default.
b) Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. Morphic Ethical Equity Fund's beta is -0.2351.
c) (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
Cost of Equity = 4.99% + -0.2351 * 6% = 3.5794%
3. Cost of Debt:
GuruFocus uses latest TTM Interest Expense divided by the latest one-year semi-annual average debt to get the simplified cost of debt.
As of Dec. 2025, Morphic Ethical Equity Fund's interest expense (positive number) was A$-0 Mil. Its total Book Value of Debt (D) is A$0.994 Mil.
Cost of Debt = -0 / 0.994 = 0%.
4. Multiply by one minus TTM Tax Rate:
GuruFocus uses the most recent TTM Tax Expense divided by the most recent TTM Pre-Tax Income to calculate the tax rate. The calculated TTM tax rate is limited to between 0% and 100%. If the calculated tax rate is higher than 100%, it is set to 100%. If the calculated tax rate is less than 0%, it is set to 0%.
The latest calculated TTM Tax Rate = 0.679 / 4.421 = 15.36%.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Morphic Ethical Equity Fund (ASX:MEC) has a WACC % of 3.49% as of Jun. 25, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Morphic Ethical Equity Fund and its competitors. This is 53% below median its historical median of 7.39. Over the past decade, Morphic Ethical Equity Fund's WACC % has ranged from 3.26 to 7.92. According to the industry distribution chart, Morphic Ethical Equity Fund ranks #301 out of 1656 companies in the Asset Management industry, placing it in the top 18.2%.
Is Morphic Ethical Equity Fund's WACC % too high?
Morphic Ethical Equity Fund's current WACC % of 3.49% is 53% below median its 10-year median of 7.39. Over the past 10 years, this metric has ranged from a low of 3.26 to a high of 7.92. The Asset Management industry median WACC % is 5.74. Morphic Ethical Equity Fund's value of 3.49% is 39.2% below this industry median. Based on the distribution chart, Morphic Ethical Equity Fund ranks #301 out of 1656 companies in the Asset Management industry, which is in the top quartile — a strong position relative to peers. Overall, Morphic Ethical Equity Fund has a GF Score™ of 35/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Morphic Ethical Equity Fund's WACC % compare to BLK and BX?
According to the Asset Management industry distribution chart, Morphic Ethical Equity Fund ranks #301 out of 1656 companies for WACC %. This places Morphic Ethical Equity Fund in the top 18% of its industry — outperforming the majority of peers. The industry median WACC % is 5.74. Morphic Ethical Equity Fund's value of 3.49% is 39.2% below this benchmark. Historically, Morphic Ethical Equity Fund's own WACC % has ranged from 3.26 to 7.92 over the past decade. While the company's 10-year median is 7.39 vs. the industry median of 5.74, Morphic Ethical Equity Fund has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good WACC % for an Asset Management company?
The median WACC % among Asset Management companies is 5.74, based on 1,656 companies in the industry. Companies in the top quartile (top 25%) have a WACC % significantly above this median, while those in the bottom quartile fall well below. However, WACC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Morphic Ethical Equity Fund's current WACC % of 3.49% is 39.2% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high WACC % mean?
A high WACC % can signal that a stock is expensive relative to its fundamentals. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Morphic Ethical Equity Fund and its competitors. For the Asset Management industry, the median WACC % is 5.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Morphic Ethical Equity Fund's current WACC % is 3.49%, which is 53% below median its own 10-year median of 7.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Morphic Ethical Equity Fund stock overvalued right now?
Based on GuruFocus' analysis, Morphic Ethical Equity Fund (ASX:MEC) is currently considered Significantly Overvalued. The stock's GF Value™ is A$0.78, compared to a current price of A$1.36 — trading 73.7% above its estimated fair value. The current WACC % is 3.49%, which is 53% below median its 10-year median of 7.39 and 39.2% below the Asset Management industry median of 5.74. Morphic Ethical Equity Fund's overall GF Score™ is 35/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is WACC % calculated?
WACC % is calculated from a company's financial statements. For Morphic Ethical Equity Fund (ASX:MEC), the current WACC % is 3.49% as of Jun. 25, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Morphic Ethical Equity Fund (ASX:MEC) Overvalued in 2026?
Based on GuruFocus' analysis, Morphic Ethical Equity Fund stock appears to be overvalued.
The current stock price of A$1.36 is trading 73.7% above its estimated GF Value™ of A$0.78.
GuruFocus considers Morphic Ethical Equity Fund to be Significantly Overvalued.
Key valuation signals for ASX:MEC:
WACC %: 3.49% (53% below median its 10-year median of 7.39)
GF Value™: A$0.78 vs. price of A$1.36 (73.7% above fair value)
Industry Position: 39.2% below the Asset Management median (#301 of 1656)
No single metric tells the full story. See the ASX:MEC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Morphic Ethical Equity Fund Ltd is an investment company. Its investment objective is to provide superior risk-adjusted returns to shareholders, comprising a combination of capital growth and income, thus allowing franked dividends to be paid to shareholders when prudent, and provided the company has sufficient profit reserves and franking credits available. The company invests in a portfolio of internationally listed securities screened to exclude entities involved in environmentally damaging activities (including coal and uranium, mining and oil and gas), intensive farming and aquaculture, tobacco, armaments, alcohol, and gambling. It earns revenue from dividend income, interest income, and other returns from the investment portfolio.
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