MYDS.TA WACC - Weighted Average Cost of Capital

The WACC of Mydas Real Estate Investments Ltd (MYDS.TA) is 6.7%.

The Cost of Equity of Mydas Real Estate Investments Ltd (MYDS.TA) is 15.25%.

The Cost of Debt of Mydas Real Estate Investments Ltd (MYDS.TA) is 7.30%.

	Range	Selected
Cost of equity	11.70% - 18.80%	15.25%
Tax rate	19.50% - 44.80%	32.15%
Cost of debt	7.00% - 7.60%	7.30%
WACC	6.7% - 6.7%	6.7%

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	1.13	1.82

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.70%	18.80%

Tax rate	19.50%	44.80%
Debt/Equity ratio	4.7	4.7
Cost of debt	7.00%	7.60%

After-tax WACC	6.7%	6.7%


Selected WACC	6.7%

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 (15.25%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (1.13) + 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.