ITMR.TA WACC - Weighted Average Cost of Capital

The WACC of Itamar Medical Ltd (ITMR.TA) is 7.3%.

The Cost of Equity of Itamar Medical Ltd (ITMR.TA) is 7.30%.

The Cost of Debt of Itamar Medical Ltd (ITMR.TA) is 7.10%.

	Range	Selected
Cost of equity	6.20% - 8.40%	7.30%
Tax rate	1.10% - 1.40%	1.25%
Cost of debt	7.00% - 7.20%	7.10%
WACC	6.2% - 8.4%	7.3%

WACC

ITMR.TA WACC calculation

Category	Low	High

Long-term bond rate	3.0%	3.5%
Equity market risk premium	5.4%	6.4%
Adjusted beta	0.59	0.69

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.20%	8.40%

Tax rate	1.10%	1.40%
Debt/Equity ratio	0.02	0.02
Cost of debt	7.00%	7.20%

After-tax WACC	6.2%	8.4%


Selected WACC	7.3%

ITMR.TA'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 ITMR.TA:

cost_of_equity (7.30%) = risk_free_rate (3.25%) + equity_risk_premium (5.90%) * adjusted_beta (0.59) + 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.