MDP.WA WACC - Weighted Average Cost of Capital
The WACC of Medcamp SA (MDP.WA) is 8.0%.
| Range | Selected | |
| Cost of equity | 7.2% - 8.9% | 8.05% |
| Tax rate | 15.3% - 19.2% | 17.25% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.2% - 8.8% | 8.0% |
| Category | Low | High |
| Long-term bond rate | 5.5% | 6.0% |
| Equity market risk premium | 6.3% | 7.3% |
| Adjusted beta | 0.27 | 0.33 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.2% | 8.9% |
| Tax rate | 15.3% | 19.2% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.2% | 8.8% |
| Selected WACC | 8.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| MDP.WA | Medcamp SA | 0.01 | -0.16 | -0.16 |
| BERR.PA | Financiere Immobiliere Etang Berre Medit SA | 0.04 | 0.43 | 0.41 |
| CZT.WA | Czerwona Torebka SA | 0.01 | -0.13 | -0.13 |
| EFI.PA | Eurasia Fonciere Investissements SA | 0.93 | 0.09 | 0.05 |
| IBS.WA | Noble Financials SA | 2.37 | 0.47 | 0.16 |
| IMMOU.BR | Immo Moury Sicaf Immobiliere Publique de Droit Belge SCA | 1.53 | -0.08 | -0.03 |
| KAMP.AT | REDS Real Estate Development and Services SA | 0.2 | -0.4 | -0.35 |
| RHD.WA | Reinhold Europe AB | 0.21 | -0.3 | -0.26 |
| STUDBO.ST | Studentbostader I Sverige AB (publ) | 6 | 0.25 | 0.04 |
| WINK.L | M Winkworth PLC | 0.95 | -0.07 | -0.04 |
| Low | High | |
| Unlevered beta | -0.08 | 0 |
| Relevered beta | -0.09 | 0 |
| Adjusted relevered beta | 0.27 | 0.33 |
MDP.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 MDP.WA:
cost_of_equity (8.05%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.27) + 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.