MTI Wireless EdgeLSE:MWE +3.45%71 WACC % is 11.94% as of Jul. 03, 2026, which is 65% above its 10-year median of 7.23. GuruFocus rates LSE:MWE with a GF Score™ of 71/100 and a GF Value™ of £0.49 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 2,515 Hardware companies, MTI Wireless Edge ranks worse than 79.01% on this metric.
As of today (2026-07-03), MTI Wireless Edge's weighted average cost of capital is 11.94%%. MTI Wireless Edge's ROIC % is 19.85% (calculated using TTM income statement data).
MTI Wireless Edge generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
For a comprehensive WACC calculation, please access the WACC Calculator.
MTI Wireless Edge (LSE:MWE) 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, MTI Wireless Edge's weighted average cost of capital is 11.94%%. MTI Wireless Edge's ROIC % is 19.85% (calculated using TTM income statement data).
MTI Wireless Edge generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
Be Aware
1. GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding latest one-year quarterly 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 quarterly average debt to get the simplified cost of debt.
Related Terms
MTI Wireless Edge WACC % Historical Data
* Premium members only.
The historical data trend for MTI Wireless Edge'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 Communication Equipment subindustry, MTI Wireless Edge'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.
MTI Wireless Edge WACC % vs Hardware Industry
For the Hardware industry and Technology sector, MTI Wireless Edge's WACC % distribution charts can be found below:
* The bar in red indicates where MTI Wireless Edge'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, MTI Wireless Edge's market capitalization (E) is £64.669 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 quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Mar. 2026, MTI Wireless Edge's latest one-year quarterly average Book Value of Debt (D) is £0.6696 Mil.
a) weight of equity = E / (E + D) = 64.669 / (64.669 + 0.6696) = 0.9898
b) weight of debt = D / (E + D) = 0.6696 / (64.669 + 0.6696) = 0.0102
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 3.982%. 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. MTI Wireless Edge's beta is 1.2946.
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 = 3.982% + 1.2946 * 6% = 11.7496%
3. Cost of Debt:
GuruFocus uses latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
As of Mar. 2026, MTI Wireless Edge's interest expense (positive number) was £0.234 Mil. Its total Book Value of Debt (D) is £0.6696 Mil.
Cost of Debt = 0.234 / 0.6696 = 34.9462%.
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 = 0.549 / 4.246 = 12.93%.
MTI Wireless Edge'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)
=
0.9898
*
11.7496%
+
0.0102
*
34.9462%
*
(1 - 12.93%)
=
11.94%
* 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.
MTI Wireless Edge (LSE:MWE) has a WACC % of 11.94% as of Jul. 03, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on MTI Wireless Edge and its competitors. This is 65% above median its historical median of 7.23. Over the past decade, MTI Wireless Edge's WACC % has ranged from 0.44 to 12.60. According to the industry distribution chart, MTI Wireless Edge ranks #1987 out of 2515 companies in the Hardware industry, placing it in the top 79%.
Is MTI Wireless Edge's WACC % too high?
MTI Wireless Edge's current WACC % of 11.94% is 65% above median its 10-year median of 7.23. Over the past 10 years, this metric has ranged from a low of 0.44 to a high of 12.60. The Hardware industry median WACC % is 8.16. MTI Wireless Edge's value of 11.94% is 46.3% above this industry median. Based on the distribution chart, MTI Wireless Edge ranks #1987 out of 2515 companies in the Hardware industry, which is in the bottom quartile relative to peers. Overall, MTI Wireless Edge has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does MTI Wireless Edge's WACC % compare to CSCO and CIEN?
According to the Hardware industry distribution chart, MTI Wireless Edge ranks #1987 out of 2515 companies for WACC %. This places MTI Wireless Edge in the lower half of its industry. The industry median WACC % is 8.16. MTI Wireless Edge's value of 11.94% is 46.3% above this benchmark. Historically, MTI Wireless Edge's own WACC % has ranged from 0.44 to 12.60 over the past decade. While the company's 10-year median is 7.23 vs. the industry median of 8.16, MTI Wireless Edge 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 Hardware company?
The median WACC % among Hardware companies is 8.16, based on 2,515 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. MTI Wireless Edge's current WACC % of 11.94% is 46.3% 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 MTI Wireless Edge and its competitors. For the Hardware industry, the median WACC % is 8.16 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. MTI Wireless Edge's current WACC % is 11.94%, which is 65% above median its own 10-year median of 7.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is MTI Wireless Edge stock overvalued right now?
Based on GuruFocus' analysis, MTI Wireless Edge (LSE:MWE) is currently considered Significantly Overvalued. The stock's GF Value™ is £0.49, compared to a current price of £0.75 — trading 53.1% above its estimated fair value. The current WACC % is 11.94%, which is 65% above median its 10-year median of 7.23 and 46.3% above the Hardware industry median of 8.16. MTI Wireless Edge's overall GF Score™ is 71/100 with 7 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 MTI Wireless Edge (LSE:MWE), the current WACC % is 11.94% as of Jul. 03, 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 MTI Wireless Edge (LSE:MWE) Overvalued in 2026?
Based on GuruFocus' analysis, MTI Wireless Edge stock appears to be overvalued.
The current stock price of £0.75 is trading 53.1% above its estimated GF Value™ of £0.49.
GuruFocus considers MTI Wireless Edge to be Significantly Overvalued.
Key valuation signals for LSE:MWE:
WACC %: 11.94% (65% above median its 10-year median of 7.23)
GF Value™: £0.49 vs. price of £0.75 (53.1% above fair value)
Industry Position: 46.3% above the Hardware median (#1987 of 2515)
No single metric tells the full story. See the LSE:MWE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
MTI Wireless Edge Ltd is an Israel-based company engaged in three segments; the antennas segment includes the development, design, manufacture, and marketing of antennas for the military and civilian sectors, Water solutions segment is a provider of remote control solutions for water and irrigation applications based on Motorola's IRRInet state of the art control, monitoring and communication technologies, and Distribution and Consultation segment provides consulting representation, and marketing services to foreign companies in the field of RF (radio frequency) and Microwave, including engineering services in the field of aerostat systems and system engineering services, and development, manufacture, and integration of communication systems and monitoring and control systems.
71GF Score
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