MVMD.CN WACC - Weighted Average Cost of Capital
The WACC of Mountain Valley MD Holdings Inc (MVMD.CN) is 7.8%.
| Range | Selected | |
| Cost of equity | 6.5% - 9.2% | 7.85% |
| Tax rate | 25.9% - 26.5% | 26.2% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.5% - 9.2% | 7.8% |
| Category | Low | High |
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.66 | 0.82 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.5% | 9.2% |
| Tax rate | 25.9% | 26.5% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.5% | 9.2% |
| Selected WACC | 7.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| MVMD.CN | Mountain Valley MD Holdings Inc | 0.84 | -0.84 | -0.52 |
| BILZ.CN | Ignite International Brands Ltd | 0.15 | 0.96 | 0.86 |
| GOLD.TO | GoldMining Inc | 0 | 0.69 | 0.69 |
| GSV.TO | Gold Standard Ventures Corp | 0 | 0.81 | 0.81 |
| HYMC | Hycroft Mining Holding Corporation | 1.87 | 0.77 | 0.32 |
| MFST | Medifirst Solutions Inc | 265.56 | 0.9 | 0 |
| MOZ.TO | Marathon Gold Corp | 0.09 | 1.57 | 1.47 |
| ORE.V | Orezone Gold Corp | 0 | 0.61 | 0.61 |
| RUP.V | Rupert Resources Ltd | 0 | 0.8 | 0.8 |
| SMPR | Cambrian Minerals Group Inc | 0.2 | -0.04 | -0.03 |
| Low | High | |
| Unlevered beta | 0.49 | 0.73 |
| Relevered beta | 0.49 | 0.73 |
| Adjusted relevered beta | 0.66 | 0.82 |
MVMD.CN'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 MVMD.CN:
cost_of_equity (7.85%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.66) + 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.