VIVO
Meridian Bioscience Inc
Price:  
33.97 
USD
Volume:  
2,039,920
United States | Health Care Equipment & Supplies

VIVO WACC - Weighted Average Cost of Capital

The WACC of Meridian Bioscience Inc (VIVO) is 9.0%.

The Cost of Equity of Meridian Bioscience Inc (VIVO) is 9.15%.
The Cost of Debt of Meridian Bioscience Inc (VIVO) is 4.25%.

RangeSelected
Cost of equity7.4% - 10.9%9.15%
Tax rate22.0% - 22.4%22.2%
Cost of debt4.0% - 4.5%4.25%
WACC7.3% - 10.8%9.0%
WACC

VIVO WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium4.6%5.6%
Adjusted beta0.761.08
Additional risk adjustments0.0%0.5%
Cost of equity7.4%10.9%
Tax rate22.0%22.4%
Debt/Equity ratio
0.020.02
Cost of debt4.0%4.5%
After-tax WACC7.3%10.8%
Selected WACC9.0%

VIVO'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 VIVO:

cost_of_equity (9.15%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.76) + 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.