TMD.TO
Titan Medical Inc
Price:  
0.80 
CAD
Volume:  
17,041.00
Canada | Health Care Equipment & Supplies
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TMD.TO WACC - Weighted Average Cost of Capital

The WACC of Titan Medical Inc (TMD.TO) is 8.0%.

The Cost of Equity of Titan Medical Inc (TMD.TO) is 8.15%.
The Cost of Debt of Titan Medical Inc (TMD.TO) is 5.00%.

Range Selected
Cost of equity 6.30% - 10.00% 8.15%
Tax rate 0.10% - 0.20% 0.15%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.2% - 9.8% 8.0%
WACC

TMD.TO WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.61 0.96
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.30% 10.00%
Tax rate 0.10% 0.20%
Debt/Equity ratio 0.05 0.05
Cost of debt 5.00% 5.00%
After-tax WACC 6.2% 9.8%
Selected WACC 8.0%

TMD.TO'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 TMD.TO:

cost_of_equity (8.15%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.61) + 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.