The WACC of Median Technologies SA (ALMDT.PA) is 6.3%.
Range | Selected | |
Cost of equity | 5.5% - 8.2% | 6.85% |
Tax rate | 0.3% - 1.1% | 0.7% |
Cost of debt | 5.0% - 5.0% | 5% |
WACC | 5.3% - 7.3% | 6.3% |
Category | Low | High |
Long-term bond rate | 3.0% | 3.5% |
Equity market risk premium | 5.8% | 6.8% |
Adjusted beta | 0.17 | 0.4 |
Additional risk adjustments | 1.5% | 2.0% |
Cost of equity | 5.5% | 8.2% |
Tax rate | 0.3% | 1.1% |
Debt/Equity ratio | 0.43 | 0.43 |
Cost of debt | 5.0% | 5.0% |
After-tax WACC | 5.3% | 7.3% |
Selected WACC | 6.3% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
ALMDT.PA | Median Technologies SA | 0.43 | -0.49 | -0.34 |
CONTX.OL | ContextVision AB | 0.03 | 0.55 | 0.53 |
CSAM.OL | Csam Health Group AS | 0.7 | -0.67 | -0.39 |
INHC.L | Induction Healthcare Group PLC | 0.01 | -0.81 | -0.81 |
INS.L | Instem PLC | 0.01 | 0.56 | 0.55 |
MDA.WA | Medapp SA | 0.01 | 0.64 | 0.63 |
NXU.DE | Nexus AG | 0.02 | 0.1 | 0.1 |
PSKY.OL | Patientsky Group AS | 0.46 | -0.25 | -0.17 |
SDT.PA | Visiodent SA | 0.19 | -0.21 | -0.18 |
SENS.L | Sensyne Health PLC | 1.63 | 0.16 | 0.06 |
Low | High | |
Unlevered beta | -0.17 | 0.08 |
Relevered beta | -0.24 | 0.1 |
Adjusted relevered beta | 0.17 | 0.4 |
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.