MEDIC.AT WACC - Weighted Average Cost of Capital

The WACC of Medicon Hellas SA (MEDIC.AT) is 7.9%.

The Cost of Equity of Medicon Hellas SA (MEDIC.AT) is 14.35%.

The Cost of Debt of Medicon Hellas SA (MEDIC.AT) is 4.25%.

	Range	Selected
Cost of equity	12.70% - 16.00%	14.35%
Tax rate	39.10% - 44.10%	41.60%
Cost of debt	4.00% - 4.50%	4.25%
WACC	7.2% - 8.7%	7.9%

WACC

MEDIC.AT WACC calculation

Category	Low	High

Long-term bond rate	3.3%	3.8%
Equity market risk premium	8.8%	9.8%
Adjusted beta	1.07	1.19

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.70%	16.00%

Tax rate	39.10%	44.10%
Debt/Equity ratio	1.17	1.17
Cost of debt	4.00%	4.50%

After-tax WACC	7.2%	8.7%


Selected WACC	7.9%

MEDIC.AT'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 MEDIC.AT:

cost_of_equity (14.35%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (1.07) + 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.