ALMDT.PA
Median Technologies SA
Price:  
2.31 
EUR
Volume:  
225,325
France | Health Care Technology

ALMDT.PA WACC - Weighted Average Cost of Capital

The WACC of Median Technologies SA (ALMDT.PA) is 6.3%.

The Cost of Equity of Median Technologies SA (ALMDT.PA) is 6.85%.
The Cost of Debt of Median Technologies SA (ALMDT.PA) is 5%.

RangeSelected
Cost of equity5.5% - 8.2%6.85%
Tax rate0.3% - 1.1%0.7%
Cost of debt5.0% - 5.0%5%
WACC5.3% - 7.3%6.3%
WACC

ALMDT.PA WACC calculation

CategoryLowHigh
Long-term bond rate3.0%3.5%
Equity market risk premium5.8%6.8%
Adjusted beta0.170.4
Additional risk adjustments1.5%2.0%
Cost of equity5.5%8.2%
Tax rate0.3%1.1%
Debt/Equity ratio
0.430.43
Cost of debt5.0%5.0%
After-tax WACC5.3%7.3%
Selected WACC6.3%

ALMDT.PA's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for ALMDT.PA:

cost_of_equity (6.85%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.17) + risk_adjustments (1.75%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.