MED.DE WACC - Weighted Average Cost of Capital

The WACC of Mediclin AG (MED.DE) is 5.6%.

The Cost of Equity of Mediclin AG (MED.DE) is 10.50%.

The Cost of Debt of Mediclin AG (MED.DE) is 5.20%.

	Range	Selected
Cost of equity	8.30% - 12.70%	10.50%
Tax rate	17.60% - 22.80%	20.20%
Cost of debt	4.00% - 6.40%	5.20%
WACC	4.4% - 6.7%	5.6%

WACC

MED.DE WACC calculation

Category	Low	High

Long-term bond rate	2.8%	3.3%
Equity market risk premium	5.1%	6.1%
Adjusted beta	1.08	1.46

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.30%	12.70%

Tax rate	17.60%	22.80%
Debt/Equity ratio	3.35	3.35
Cost of debt	4.00%	6.40%

After-tax WACC	4.4%	6.7%


Selected WACC	5.6%

MED.DE'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 MED.DE:

cost_of_equity (10.50%) = risk_free_rate (3.05%) + equity_risk_premium (5.60%) * adjusted_beta (1.08) + 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.