MXT.CN WACC - Weighted Average Cost of Capital
The WACC of MedXtractor Corp (MXT.CN) is 5.0%.
| Range | Selected | |
| Cost of equity | 5.2% - 7.5% | 6.35% |
| Tax rate | 26.5% - 26.5% | 26.5% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.5% - 5.6% | 5.0% |
| Category | Low | High |
| Long-term bond rate | 3.4% | 3.9% |
| Equity market risk premium | 4.7% | 5.7% |
| Adjusted beta | 0.4 | 0.55 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.2% | 7.5% |
| Tax rate | 26.5% | 26.5% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.5% | 5.6% |
| Selected WACC | 5.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| MXT.CN | MedXtractor Corp | 0.87 | 0.96 | 0.59 |
| ASTI.CN | Aquarius Surgical Technologies Inc | 7.32 | 1.93 | 0.3 |
| CNNA | Cann American Corp | 0.07 | -0.65 | -0.62 |
| FWDG | FutureWorld Corp | 34.54 | -10.63 | -0.4 |
| KPAY | KinerjaPay Corp | 12.69 | 1.06 | 0.1 |
| MMNT | Momentous Holdings Corp | 10.96 | 0.47 | 0.05 |
| MTVX | APT Moto Vox Group Inc | 3112.26 | 0 | 0 |
| SGOO | Snoogoo Corp | 1.11 | -1.1 | -0.6 |
| TMS.H.V | Targeted Microwave Solutions Inc | 0.32 | -0.9 | -0.73 |
| Low | High | |
| Unlevered beta | -0.32 | 0.04 |
| Relevered beta | 0.1 | 0.33 |
| Adjusted relevered beta | 0.4 | 0.55 |
MXT.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 MXT.CN:
cost_of_equity (6.35%) = risk_free_rate (3.65%) + equity_risk_premium (5.20%) * adjusted_beta (0.4) + 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.