MYDS.TA WACC - Weighted Average Cost of Capital

The WACC of Mydas Real Estate Investments Ltd (MYDS.TA) is 10.8%.

The Cost of Equity of Mydas Real Estate Investments Ltd (MYDS.TA) is 15.10%.

The Cost of Debt of Mydas Real Estate Investments Ltd (MYDS.TA) is 16.20%.

	Range	Selected
Cost of equity	11.70% - 18.50%	15.10%
Tax rate	19.50% - 44.80%	32.15%
Cost of debt	7.60% - 24.80%	16.20%
WACC	7.1% - 14.6%	10.8%

WACC

MYDS.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	1.11	1.77

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.70%	18.50%

Tax rate	19.50%	44.80%
Debt/Equity ratio	4.5	4.5
Cost of debt	7.60%	24.80%

After-tax WACC	7.1%	14.6%


Selected WACC	10.8%

MYDS.TA'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 MYDS.TA:

cost_of_equity (15.10%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (1.11) + 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.