MED.MC WACC - Weighted Average Cost of Capital

The WACC of Medcom Tech SA (MED.MC) is 10.9%.

The Cost of Equity of Medcom Tech SA (MED.MC) is 10.20%.

The Cost of Debt of Medcom Tech SA (MED.MC) is 12.05%.

	Range	Selected
Cost of equity	8.00% - 12.40%	10.20%
Tax rate	4.70% - 6.50%	5.60%
Cost of debt	9.20% - 14.90%	12.05%
WACC	8.5% - 13.4%	10.9%

WACC

MED.MC WACC calculation

Category	Low	High

Long-term bond rate	3.1%	3.6%
Equity market risk premium	7.4%	8.4%
Adjusted beta	0.66	0.99

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.00%	12.40%

Tax rate	4.70%	6.50%
Debt/Equity ratio	1.77	1.77
Cost of debt	9.20%	14.90%

After-tax WACC	8.5%	13.4%


Selected WACC	10.9%

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 (10.20%) = risk_free_rate (3.35%) + equity_risk_premium (7.90%) * adjusted_beta (0.66) + 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.