M3V.DE WACC - Weighted Average Cost of Capital
The WACC of Mevis Medical Solutions AG (M3V.DE) is 6.8%.
| Range | Selected | |
| Cost of equity | 7.5% - 11.3% | 9.4% |
| Tax rate | 1.4% - 1.7% | 1.55% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.7% - 7.9% | 6.8% |
| Category | Low | High |
| Long-term bond rate | 2.0% | 2.5% |
| Equity market risk premium | 4.7% | 5.7% |
| Adjusted beta | 1.15 | 1.45 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.5% | 11.3% |
| Tax rate | 1.4% | 1.7% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.7% | 7.9% |
| Selected WACC | 6.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| M3V.DE | Mevis Medical Solutions AG | 0.87 | 0.09 | 0.05 |
| ALMDT.PA | Median Technologies SA | 0.44 | -0.45 | -0.31 |
| COG.L | Cambridge Cognition Holdings PLC | 0 | 1.02 | 1.02 |
| CONTX.OL | ContextVision AB | 0.03 | 0.45 | 0.44 |
| FRISQ.ST | Frisq Holding AB (publ) | 0.14 | 0.73 | 0.65 |
| INS.L | Instem PLC | 0.01 | 0.56 | 0.55 |
| IS8.DE | Ifa Systems AG | 0.95 | 0.63 | 0.32 |
| PSKY.OL | Patientsky Group AS | 0.46 | -0.25 | -0.17 |
| SDT.PA | Visiodent SA | 0.19 | -0.21 | -0.18 |
| SENS.L | Sensyne Health PLC | 1.63 | 0.16 | 0.06 |
| SNT.WA | Synektik SA | 0.01 | 0.63 | 0.62 |
| Low | High | |
| Unlevered beta | 0.06 | 0.44 |
| Relevered beta | 1.22 | 1.67 |
| Adjusted relevered beta | 1.15 | 1.45 |
M3V.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 M3V.DE:
cost_of_equity (9.40%) = risk_free_rate (2.25%) + equity_risk_premium (5.20%) * adjusted_beta (1.15) + 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.