MEDIC.AT WACC - Weighted Average Cost of Capital

The WACC of Medicon Hellas SA (MEDIC.AT) is 6.5%.

The Cost of Equity of Medicon Hellas SA (MEDIC.AT) is 9.10%.

The Cost of Debt of Medicon Hellas SA (MEDIC.AT) is 4.70%.

	Range	Selected
Cost of equity	7.00% - 11.20%	9.10%
Tax rate	23.00% - 28.50%	25.75%
Cost of debt	4.30% - 5.10%	4.70%
WACC	5.3% - 7.7%	6.5%

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	0.43	0.71

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.00%	11.20%

Tax rate	23.00%	28.50%
Debt/Equity ratio	0.87	0.87
Cost of debt	4.30%	5.10%

After-tax WACC	5.3%	7.7%


Selected WACC	6.5%

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 (9.10%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.43) + 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.