Marston'sLSE:MARS -1.57%50 WACC % is 7.13% as of Jun. 27, 2026, which is 46% above its 10-year median of 4.89. GuruFocus rates LSE:MARS with a GF Score™ of 50/100 and a GF Value™ of £0.39 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 369 Restaurants companies, Marston's ranks worse than 62.6% on this metric.
As of today (2026-06-27), Marston's's weighted average cost of capital is 7.13%%. Marston's's ROIC % is 5.54% (calculated using TTM income statement data).
Marston's 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.
Marston's (LSE:MARS) 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, Marston's's weighted average cost of capital is 7.13%%. Marston's's ROIC % is 5.54% (calculated using TTM income statement data).
Marston's 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
Marston's WACC % Historical Data
* Premium members only.
The historical data trend for Marston's's WACC % can be seen below:
* 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 Restaurants subindustry, Marston's'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.
Marston's WACC % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Marston's's WACC % distribution charts can be found below:
* The bar in red indicates where Marston's'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, Marston's's market capitalization (E) is £317.064 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 Mar. 2026, Marston's's latest one-year semi-annual average Book Value of Debt (D) is £1261.1667 Mil.
a) weight of equity = E / (E + D) = 317.064 / (317.064 + 1261.1667) = 0.2009
b) weight of debt = D / (E + D) = 1261.1667 / (317.064 + 1261.1667) = 0.7991
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 4.9416%. 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. Marston's's beta is 1.2729.
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 = 4.9416% + 1.2729 * 6% = 12.579%
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 Mar. 2026, Marston's's interest expense (positive number) was £89.7 Mil. Its total Book Value of Debt (D) is £1261.1667 Mil.
Cost of Debt = 89.7 / 1261.1667 = 7.1125%.
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 = 17.5 / 92.1 = 19%.
Marston's's Weighted Average Cost Of Capital (WACC) for Today is calculated as:
WACC
=
E / (E + D)
*
Cost of Equity
+
D / (E + D)
*
Cost of Debt
*
(1 - Tax Rate)
=
0.2009
*
12.579%
+
0.7991
*
7.1125%
*
(1 - 19%)
=
7.13%
* 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.
Marston's (LSE:MARS) has a WACC % of 7.13% as of Jun. 27, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Marston's and its competitors. This is 46% above median its historical median of 4.89. Over the past decade, Marston's' WACC % has ranged from 3.03 to 8.07. According to the industry distribution chart, Marston's ranks #231 out of 369 companies in the Restaurants industry, placing it in the top 62.6%.
Is Marston's' WACC % too high?
Marston's' current WACC % of 7.13% is 46% above median its 10-year median of 4.89. Over the past 10 years, this metric has ranged from a low of 3.03 to a high of 8.07. The Restaurants industry median WACC % is 5.64. Marston's' value of 7.13% is 26.4% above this industry median. Based on the distribution chart, Marston's ranks #231 out of 369 companies in the Restaurants industry, which is below the industry midpoint. Overall, Marston's has a GF Score™ of 50/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Marston's' WACC % compare to MCD and SBUX?
According to the Restaurants industry distribution chart, Marston's ranks #231 out of 369 companies for WACC %. This places Marston's in the lower half of its industry. The industry median WACC % is 5.64. Marston's' value of 7.13% is 26.4% above this benchmark. Historically, Marston's' own WACC % has ranged from 3.03 to 8.07 over the past decade. While the company's 10-year median is 4.89 vs. the industry median of 5.64, Marston's has consistently been above 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 a Restaurants company?
The median WACC % among Restaurants companies is 5.64, based on 369 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. Marston's's current WACC % of 7.13% is 26.4% above 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 Marston's and its competitors. For the Restaurants industry, the median WACC % is 5.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Marston's's current WACC % is 7.13%, which is 46% above median its own 10-year median of 4.89. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Marston's stock overvalued right now?
Based on GuruFocus' analysis, Marston's (LSE:MARS) is currently considered Modestly Overvalued. The stock's GF Value™ is £0.39, compared to a current price of £0.50 — trading 28.5% above its estimated fair value. The current WACC % is 7.13%, which is 46% above median its 10-year median of 4.89 and 26.4% above the Restaurants industry median of 5.64. Marston's' overall GF Score™ is 50/100 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 Marston's (LSE:MARS), the current WACC % is 7.13% as of Jun. 27, 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 Marston's (LSE:MARS) Overvalued in 2026?
Based on GuruFocus' analysis, Marston's stock appears to be overvalued.
The current stock price of £0.50 is trading 28.5% above its estimated GF Value™ of £0.39.
GuruFocus considers Marston's to be Modestly Overvalued.
Key valuation signals for LSE:MARS:
WACC %: 7.13% (46% above median its 10-year median of 4.89)
GF Value™: £0.39 vs. price of £0.50 (28.5% above fair value)
Industry Position: 26.4% above the Restaurants median (#231 of 369)
No single metric tells the full story. See the LSE:MARS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Marston's PLC is a beer brewer and pub operator. It operates more than 1,500 pubs across the United Kingdom under brand names including Marston's Two For One, Milestone Rotisserie, Pitcher & Piano, and Revere. It also licenses and franchises more than 500 other taverns, and it has some locations that offer lodging. The company has five breweries that distribute its beer brands for sale to both out-of-home and at-home customers. Its key beer brands include Hobgoblin, Marston's Pedigree, Wainwright, Ringwood, Brakspear, and Banks's. Roughly 20% of the company's revenue comes from the brewing business; the rest comes from its pub businesses. Virtually all revenue is generated in the United Kingdom.
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