ILM1.DE WACC - Weighted Average Cost of Capital
The WACC of Medios AG (ILM1.DE) is 7.7%.
| Range | Selected | |
| Cost of equity | 6.5% - 8.8% | 7.65% |
| Tax rate | 37.1% - 39.8% | 38.45% |
| Cost of debt | 5.9% - 19.6% | 12.75% |
| WACC | 5.3% - 10.1% | 7.7% |
| Category | Low | High |
| Long-term bond rate | 2.8% | 3.3% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.72 | 0.82 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.5% | 8.8% |
| Tax rate | 37.1% | 39.8% |
| Debt/Equity ratio | 0.75 | 0.75 |
| Cost of debt | 5.9% | 19.6% |
| After-tax WACC | 5.3% | 10.1% |
| Selected WACC | 7.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ILM1.DE | Medios AG | 0.75 | 0.72 | 0.49 |
| BLC.PA | Bastide le Confort Medical SA | 1.78 | 0.53 | 0.25 |
| FAGR.BR | Fagron NV | 0.24 | 0.28 | 0.24 |
| HAEK.DE | Haemato AG | 0.05 | 0.37 | 0.36 |
| MED.MC | Medcom Tech SA | 1.77 | 1.06 | 0.5 |
| NEU.WA | Neuca SA | 0.2 | 0.62 | 0.56 |
| OKDBV.HE | Oriola Oyj | 0.59 | 0.57 | 0.42 |
| SELEC.IS | Selcuk Ecza Deposu Ticaret ve Sanayi AS | 0.02 | 0.64 | 0.63 |
| UPR.IR | Uniphar PLC | 0.43 | 0.69 | 0.54 |
| CNBI | China BCT Pharmacy Group Inc | 0.1 | 0 | 0 |
| Low | High | |
| Unlevered beta | 0.4 | 0.5 |
| Relevered beta | 0.58 | 0.73 |
| Adjusted relevered beta | 0.72 | 0.82 |
ILM1.DE'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 ILM1.DE:
cost_of_equity (7.65%) = risk_free_rate (3.05%) + equity_risk_premium (5.60%) * adjusted_beta (0.72) + 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.