MED.MC WACC - Weighted Average Cost of Capital
The WACC of Medcom Tech SA (MED.MC) is 10.9%.
| Range | Selected | |
| Cost of equity | 7.8% - 12.4% | 10.1% |
| Tax rate | 4.7% - 6.5% | 5.6% |
| Cost of debt | 9.2% - 14.9% | 12.05% |
| WACC | 8.4% - 13.4% | 10.9% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 7.4% | 8.4% |
| Adjusted beta | 0.63 | 0.99 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.8% | 12.4% |
| Tax rate | 4.7% | 6.5% |
| Debt/Equity ratio | 1.77 | 1.77 |
| Cost of debt | 9.2% | 14.9% |
| After-tax WACC | 8.4% | 13.4% |
| Selected WACC | 10.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| MED.MC | Medcom Tech SA | 1.77 | 1.06 | 0.4 |
| BLC.PA | Bastide le Confort Medical SA | 1.71 | 0.43 | 0.16 |
| HAEK.DE | Haemato AG | 0.05 | 0.37 | 0.36 |
| ILM1.DE | Medios AG | 0.76 | 0.7 | 0.41 |
| OKDBV.HE | Oriola Oyj | 0.59 | 0.57 | 0.37 |
| UPR.IR | Uniphar PLC | 0.42 | 0.69 | 0.49 |
| AXRX | Amexdrug Corp | 3.53 | -0.37 | -0.08 |
| GEG | Great Elm Group Inc | 1.07 | 0.02 | 0.01 |
| OMI | Owens & Minor Inc | 2.98 | 0.5 | 0.13 |
| PDCO | Patterson Companies Inc | 0.23 | 0.2 | 0.17 |
| Low | High | |
| Unlevered beta | 0.17 | 0.36 |
| Relevered beta | 0.45 | 0.99 |
| Adjusted relevered beta | 0.63 | 0.99 |
MED.MC'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.MC:
cost_of_equity (10.10%) = risk_free_rate (3.35%) + equity_risk_premium (7.90%) * adjusted_beta (0.63) + 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.