MEDI.OL WACC - Weighted Average Cost of Capital
The WACC of Medistim ASA (MEDI.OL) is 7.0%.
| Range | Selected | |
| Cost of equity | 5.8% - 8.3% | 7.05% |
| Tax rate | 22.4% - 22.9% | 22.65% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.8% - 8.3% | 7.0% |
| Category | Low | High |
| Long-term bond rate | 3.3% | 3.8% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.49 | 0.65 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.8% | 8.3% |
| Tax rate | 22.4% | 22.9% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.8% | 8.3% |
| Selected WACC | 7.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| MEDI.OL | Medistim ASA | 0.01 | 0.35 | 0.35 |
| AGL.L | Angle PLC | 0.17 | 1.94 | 1.72 |
| AVO.L | Advanced Oncotherapy PLC | 5.13 | 0.23 | 0.05 |
| BCART.BR | Biocartis Group NV | 4.49 | 0.09 | 0.02 |
| BOUL.ST | Boule Diagnostics AB | 0.62 | 0.77 | 0.52 |
| CEVI.ST | CellaVision AB | 0.01 | 0.67 | 0.67 |
| CRAD B.ST | C Rad AB | 0.01 | 0.45 | 0.45 |
| EKF.L | EKF Diagnostics Holdings PLC | 0.04 | 0.02 | 0.02 |
| MMD.WA | Milestone Medical Inc | 0.26 | 0.07 | 0.06 |
| SDI.L | SDI Group PLC | 0.31 | 0.72 | 0.58 |
| Low | High | |
| Unlevered beta | 0.23 | 0.48 |
| Relevered beta | 0.24 | 0.48 |
| Adjusted relevered beta | 0.49 | 0.65 |
MEDI.OL'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 MEDI.OL:
cost_of_equity (7.05%) = risk_free_rate (3.55%) + equity_risk_premium (5.60%) * adjusted_beta (0.49) + 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.