KRMD WACC - Weighted Average Cost of Capital
The WACC of Repro Med Systems Inc (KRMD) is 6.6%.
| Range | Selected | |
| Cost of equity | 5.4% - 7.8% | 6.6% |
| Tax rate | 12.0% - 22.6% | 17.3% |
| Cost of debt | 7.0% - 7.0% | 7% |
| WACC | 5.4% - 7.8% | 6.6% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.34 | 0.52 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 7.8% |
| Tax rate | 12.0% | 22.6% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 7.0% | 7.0% |
| After-tax WACC | 5.4% | 7.8% |
| Selected WACC | 6.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| KRMD | Repro Med Systems Inc | 0 | 1.09 | 1.09 |
| BIOL | BIOLASE Inc | 46.82 | 0.24 | 0.01 |
| HTL.V | Hamilton Thorne Ltd | 0.13 | -0.61 | -0.55 |
| IGAP | Integrity Applications Inc | 0 | -1.66 | -1.66 |
| IRIX | IRIDEX Corp | 0.13 | 0.68 | 0.61 |
| MIR.V | MedMira Inc | 0.27 | 1.27 | 1.04 |
| OPS.TO | Opsens Inc | 0.03 | 0.83 | 0.81 |
| PDEX | Pro-Dex Inc | 0.08 | -0.01 | -0.01 |
| SSKN | STRATA Skin Sciences Inc | 1.66 | 0.17 | 0.07 |
| XAIR | Beyond Air Inc | 0.61 | 0.03 | 0.02 |
| Low | High | |
| Unlevered beta | 0.02 | 0.29 |
| Relevered beta | 0.01 | 0.28 |
| Adjusted relevered beta | 0.34 | 0.52 |
KRMD'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 KRMD:
cost_of_equity (6.60%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.34) + 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.