MDCA
MDC Partners Inc
Price:  
5.42 
USD
Volume:  
155,821.00
United States | Media
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

MDCA WACC - Weighted Average Cost of Capital

The WACC of MDC Partners Inc (MDCA) is 9.0%.

The Cost of Equity of MDC Partners Inc (MDCA) is 12.35%.
The Cost of Debt of MDC Partners Inc (MDCA) is 9.90%.

Range Selected
Cost of equity 10.80% - 13.90% 12.35%
Tax rate 27.00% - 27.00% 27.00%
Cost of debt 6.70% - 13.10% 9.90%
WACC 6.9% - 11.0% 9.0%
WACC

MDCA WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 4.2% 5.2%
Adjusted beta 1.81 1.86
Additional risk adjustments 0.0% 0.5%
Cost of equity 10.80% 13.90%
Tax rate 27.00% 27.00%
Debt/Equity ratio 2.02 2.02
Cost of debt 6.70% 13.10%
After-tax WACC 6.9% 11.0%
Selected WACC 9.0%

MDCA'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 MDCA:

cost_of_equity (12.35%) = risk_free_rate (3.45%) + equity_risk_premium (4.70%) * adjusted_beta (1.81) + 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.