MEDV.NE
Medivolve Inc
Price:  
0.03 
CAD
Volume:  
31,650.00
Canada | Health Care Providers & Services
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MEDV.NE WACC - Weighted Average Cost of Capital

The WACC of Medivolve Inc (MEDV.NE) is 4.3%.

The Cost of Equity of Medivolve Inc (MEDV.NE) is 5.60%.
The Cost of Debt of Medivolve Inc (MEDV.NE) is 5.00%.

Range Selected
Cost of equity 4.90% - 6.30% 5.60%
Tax rate 25.90% - 26.50% 26.20%
Cost of debt 5.00% - 5.00% 5.00%
WACC 4.1% - 4.6% 4.3%
WACC

MEDV.NE WACC calculation

Category Low High
Long-term bond rate 3.3% 3.8%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.32 0.34
Additional risk adjustments 0.0% 0.5%
Cost of equity 4.90% 6.30%
Tax rate 25.90% 26.50%
Debt/Equity ratio 2.01 2.01
Cost of debt 5.00% 5.00%
After-tax WACC 4.1% 4.6%
Selected WACC 4.3%

MEDV.NE'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 MEDV.NE:

cost_of_equity (5.60%) = risk_free_rate (3.55%) + equity_risk_premium (5.60%) * adjusted_beta (0.32) + 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.