TMDX
Transmedics Group Inc
Price:  
121.58 
USD
Volume:  
965,530.00
United States | Health Care Equipment & Supplies
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TMDX WACC - Weighted Average Cost of Capital

The WACC of Transmedics Group Inc (TMDX) is 8.2%.

The Cost of Equity of Transmedics Group Inc (TMDX) is 8.35%.
The Cost of Debt of Transmedics Group Inc (TMDX) is 6.90%.

Range Selected
Cost of equity 7.20% - 9.50% 8.35%
Tax rate 0.20% - 0.50% 0.35%
Cost of debt 5.10% - 8.70% 6.90%
WACC 6.9% - 9.4% 8.2%
WACC

TMDX WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.71 0.83
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.20% 9.50%
Tax rate 0.20% 0.50%
Debt/Equity ratio 0.12 0.12
Cost of debt 5.10% 8.70%
After-tax WACC 6.9% 9.4%
Selected WACC 8.2%

TMDX'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 TMDX:

cost_of_equity (8.35%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.71) + 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.