MEDN.TA WACC - Weighted Average Cost of Capital

The WACC of Mehadrin Ltd (MEDN.TA) is 8.3%.

The Cost of Equity of Mehadrin Ltd (MEDN.TA) is 10.05%.

The Cost of Debt of Mehadrin Ltd (MEDN.TA) is 5.70%.

	Range	Selected
Cost of equity	8.10% - 12.00%	10.05%
Tax rate	15.50% - 19.50%	17.50%
Cost of debt	4.40% - 7.00%	5.70%
WACC	6.7% - 9.9%	8.3%

WACC

MEDN.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.54	0.87

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.10%	12.00%

Tax rate	15.50%	19.50%
Debt/Equity ratio	0.5	0.5
Cost of debt	4.40%	7.00%

After-tax WACC	6.7%	9.9%


Selected WACC	8.3%

MEDN.TA'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 MEDN.TA:

cost_of_equity (10.05%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.54) + 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.