MIR.V WACC - Weighted Average Cost of Capital
The WACC of MedMira Inc (MIR.V) is 6.9%.
| Range | Selected | |
| Cost of equity | 6.6% - 8.7% | 7.65% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.0% - 7.7% | 6.9% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.53 | 0.63 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.6% | 8.7% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 0.24 | 0.24 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.0% | 7.7% |
| Selected WACC | 6.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| MIR.V | MedMira Inc | 0.24 | 1.39 | 1.18 |
| DXR | Daxor Corp | 0.02 | 0.23 | 0.22 |
| IGAP | Integrity Applications Inc | 0 | -1.66 | -1.66 |
| NMTC | Neuroone Medical Technologies Corp | 0.07 | 1.81 | 1.72 |
| RELA.CN | Relay Medical Corp | 0.04 | 0.46 | 0.45 |
| SNWV | SANUWAVE Health Inc | 0.12 | 1.16 | 1.06 |
| SQD.V | SQI Diagnostics Inc | 2.62 | 0.71 | 0.24 |
| TLT.V | Theralase Technologies Inc | 0.01 | -0.62 | -0.62 |
| VPT.V | VentriPoint Diagnostics Ltd | 0.08 | 0.36 | 0.34 |
| XAIR | Beyond Air Inc | 0.93 | 0.43 | 0.26 |
| Low | High | |
| Unlevered beta | 0.25 | 0.38 |
| Relevered beta | 0.3 | 0.45 |
| Adjusted relevered beta | 0.53 | 0.63 |
MIR.V'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 MIR.V:
cost_of_equity (7.65%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.53) + 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.