MXT.CN
MedXtractor Corp
Price:  
0.23 
CAD
Volume:  
4,420
Canada | Manufacturing

MXT.CN WACC - Weighted Average Cost of Capital

The WACC of MedXtractor Corp (MXT.CN) is 5.0%.

The Cost of Equity of MedXtractor Corp (MXT.CN) is 6.35%.
The Cost of Debt of MedXtractor Corp (MXT.CN) is 5%.

RangeSelected
Cost of equity5.2% - 7.5%6.35%
Tax rate26.5% - 26.5%26.5%
Cost of debt5.0% - 5.0%5%
WACC4.5% - 5.6%5.0%
WACC

MXT.CN WACC calculation

CategoryLowHigh
Long-term bond rate3.4%3.9%
Equity market risk premium4.7%5.7%
Adjusted beta0.40.55
Additional risk adjustments0.0%0.5%
Cost of equity5.2%7.5%
Tax rate26.5%26.5%
Debt/Equity ratio
11
Cost of debt5.0%5.0%
After-tax WACC4.5%5.6%
Selected WACC5.0%

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.