MDEX
Madison Technologies Inc
Price:  
0.00 
USD
Volume:  
5,120.00
Canada | N/A
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MDEX WACC - Weighted Average Cost of Capital

The WACC of Madison Technologies Inc (MDEX) is 4.5%.

The Cost of Equity of Madison Technologies Inc (MDEX) is 48.35%.
The Cost of Debt of Madison Technologies Inc (MDEX) is 5.00%.

Range Selected
Cost of equity 23.60% - 73.10% 48.35%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 5.00% - 5.00% 5.00%
WACC 4.1% - 4.9% 4.5%
WACC

MDEX WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 4.3 12.18
Additional risk adjustments 0.0% 0.5%
Cost of equity 23.60% 73.10%
Tax rate 26.20% 27.00%
Debt/Equity ratio 54.33 54.33
Cost of debt 5.00% 5.00%
After-tax WACC 4.1% 4.9%
Selected WACC 4.5%

MDEX'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 MDEX:

cost_of_equity (48.35%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (4.3) + 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.