MDXG
MiMedx Group Inc
Price:  
7.42 
USD
Volume:  
1,859,096.00
United States | Biotechnology
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MDXG WACC - Weighted Average Cost of Capital

The WACC of MiMedx Group Inc (MDXG) is 9.9%.

The Cost of Equity of MiMedx Group Inc (MDXG) is 10.05%.
The Cost of Debt of MiMedx Group Inc (MDXG) is 4.50%.

Range Selected
Cost of equity 8.40% - 11.70% 10.05%
Tax rate 12.80% - 22.70% 17.75%
Cost of debt 4.50% - 4.50% 4.50%
WACC 8.3% - 11.6% 9.9%
WACC

MDXG WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.99 1.22
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.40% 11.70%
Tax rate 12.80% 22.70%
Debt/Equity ratio 0.02 0.02
Cost of debt 4.50% 4.50%
After-tax WACC 8.3% 11.6%
Selected WACC 9.9%

MDXG'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 MDXG:

cost_of_equity (10.05%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.99) + 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.