MCAP.ST
MedCap AB (publ)
Price:  
446.50 
SEK
Volume:  
59,674.00
Sweden | Life Sciences Tools & Services
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MCAP.ST WACC - Weighted Average Cost of Capital

The WACC of MedCap AB (publ) (MCAP.ST) is 6.9%.

The Cost of Equity of MedCap AB (publ) (MCAP.ST) is 7.05%.
The Cost of Debt of MedCap AB (publ) (MCAP.ST) is 4.25%.

Range Selected
Cost of equity 5.30% - 8.80% 7.05%
Tax rate 20.50% - 21.50% 21.00%
Cost of debt 4.00% - 4.50% 4.25%
WACC 5.2% - 8.5% 6.9%
WACC

MCAP.ST WACC calculation

Category Low High
Long-term bond rate 2.5% 3.0%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.56 0.86
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.30% 8.80%
Tax rate 20.50% 21.50%
Debt/Equity ratio 0.05 0.05
Cost of debt 4.00% 4.50%
After-tax WACC 5.2% 8.5%
Selected WACC 6.9%

MCAP.ST'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 MCAP.ST:

cost_of_equity (7.05%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (0.56) + 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.