EMC.WA WACC - Weighted Average Cost of Capital

The WACC of EMC Instytut Medyczny SA (EMC.WA) is 9.4%.

The Cost of Equity of EMC Instytut Medyczny SA (EMC.WA) is 10.30%.

The Cost of Debt of EMC Instytut Medyczny SA (EMC.WA) is 5.75%.

	Range	Selected
Cost of equity	8.90% - 11.70%	10.30%
Tax rate	21.00% - 30.50%	25.75%
Cost of debt	4.50% - 7.00%	5.75%
WACC	8.1% - 10.7%	9.4%

WACC

EMC.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.53	0.7

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.90%	11.70%

Tax rate	21.00%	30.50%
Debt/Equity ratio	0.17	0.17
Cost of debt	4.50%	7.00%

After-tax WACC	8.1%	10.7%


Selected WACC	9.4%

EMC.WA'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 EMC.WA:

cost_of_equity (10.30%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.53) + 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.