CNMD WACC - Weighted Average Cost of Capital
The WACC of Conmed Corp (CNMD) is 7.8%.
| Range | Selected | |
| Cost of equity | 8.3% - 11.5% | 9.9% |
| Tax rate | 17.1% - 19.4% | 18.25% |
| Cost of debt | 4.0% - 4.9% | 4.45% |
| WACC | 6.6% - 9.0% | 7.8% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.95 | 1.18 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.3% | 11.5% |
| Tax rate | 17.1% | 19.4% |
| Debt/Equity ratio | 0.49 | 0.49 |
| Cost of debt | 4.0% | 4.9% |
| After-tax WACC | 6.6% | 9.0% |
| Selected WACC | 7.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CNMD | Conmed Corp | 0.49 | 0.28 | 0.2 |
| ATRC | AtriCure Inc | 0.04 | 1.03 | 0.99 |
| CMD | Cantel Medical Corp | 0.31 | 1.55 | 1.24 |
| GKOS | Glaukos Corp | 0.01 | 1.22 | 1.2 |
| GMED | Globus Medical Inc | 0.05 | 0.65 | 0.62 |
| ITGR | Integer Holdings Corp | 0.24 | 0.7 | 0.59 |
| LIVN | LivaNova PLC | 0.26 | 0.56 | 0.46 |
| NUVA | NuVasive Inc | 0.43 | 0.94 | 0.7 |
| NVRO | Nevro Corp | 1.02 | 1.56 | 0.86 |
| TNDM | Tandem Diabetes Care Inc | 0.23 | 1.34 | 1.13 |
| Low | High | |
| Unlevered beta | 0.67 | 0.91 |
| Relevered beta | 0.93 | 1.27 |
| Adjusted relevered beta | 0.95 | 1.18 |
CNMD'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 CNMD:
cost_of_equity (9.90%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.95) + risk_adjustments (0.25%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.