MED.MC
Medcom Tech SA
Price:  
0.69 
EUR
Volume:  
3,900
Spain | Health Care Providers & Services

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 10.1%.
The Cost of Debt of Medcom Tech SA (MED.MC) is 12.05%.

RangeSelected
Cost of equity7.8% - 12.4%10.1%
Tax rate4.7% - 6.5%5.6%
Cost of debt9.2% - 14.9%12.05%
WACC8.4% - 13.4%10.9%
WACC

MED.MC WACC calculation

CategoryLowHigh
Long-term bond rate3.1%3.6%
Equity market risk premium7.4%8.4%
Adjusted beta0.630.99
Additional risk adjustments0.0%0.5%
Cost of equity7.8%12.4%
Tax rate4.7%6.5%
Debt/Equity ratio
1.771.77
Cost of debt9.2%14.9%
After-tax WACC8.4%13.4%
Selected WACC10.9%

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 (10.10%) = 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.