MDA.WA WACC - Weighted Average Cost of Capital

The WACC of Medapp SA (MDA.WA) is 9.0%.

The Cost of Equity of Medapp SA (MDA.WA) is 9.05%.

The Cost of Debt of Medapp SA (MDA.WA) is 10.70%.

	Range	Selected
Cost of equity	7.50% - 10.60%	9.05%
Tax rate	16.90% - 24.00%	20.45%
Cost of debt	10.70% - 10.70%	10.70%
WACC	7.5% - 10.6%	9.0%

WACC

MDA.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.31	0.56

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.50%	10.60%

Tax rate	16.90%	24.00%
Debt/Equity ratio	0.01	0.01
Cost of debt	10.70%	10.70%

After-tax WACC	7.5%	10.6%


Selected WACC	9.0%

MDA.WA'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 MDA.WA:

cost_of_equity (9.05%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.31) + 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.