The WACC of Nurosene Health Inc (MEND.CN) is 9.3%.
| Range | Selected | |
| Cost of equity | 12.30% - 14.90% | 13.60% |
| Tax rate | 0.70% - 1.10% | 0.90% |
| Cost of debt | 5.00% - 5.00% | 5.00% |
| WACC | 8.6% - 9.9% | 9.3% |
| Category | Low | High |
| Long-term bond rate | 3.6% | 4.1% |
| Equity market risk premium | 5.5% | 6.5% |
| Adjusted beta | 1.59 | 1.59 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 12.30% | 14.90% |
| Tax rate | 0.70% | 1.10% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.00% | 5.00% |
| After-tax WACC | 8.6% | 9.9% |
| Selected WACC | 9.3% | |
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 MEND.CN:
cost_of_equity (13.60%) = risk_free_rate (3.85%) + equity_risk_premium (6.00%) * adjusted_beta (1.59) + 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.