VYCO WACC - Weighted Average Cost of Capital
The WACC of Vycor Medical Inc (VYCO) is 7.2%.
| Range | Selected | |
| Cost of equity | 5.8% - 10.1% | 7.95% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 5.2% - 9.2% | 7.2% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.41 | 0.94 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.8% | 10.1% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 0.24 | 0.24 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 5.2% | 9.2% |
| Selected WACC | 7.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| VYCO | Vycor Medical Inc | 0.24 | 1.5 | 1.28 |
| ARTH | Arch Therapeutics Inc | 1267524.8 | 1.23 | 0 |
| CEMI | Chembio Diagnostics Inc | 1.12 | 1.86 | 1.02 |
| EMDF | XL Rent Inc | 35.5 | -0.61 | -0.02 |
| SMTI | Sanara Medtech Inc | 0.11 | 1.28 | 1.19 |
| TELA | TELA Bio Inc | 0.95 | 0.3 | 0.18 |
| UEEC | United Health Products Inc | 0.02 | -0.9 | -0.88 |
| UNVC | Univec Conglomerate Inc | 0.5 | 1.12 | 0.82 |
| XTNT | Xtant Medical Holdings Inc | 0.37 | 0.94 | 0.74 |
| Low | High | |
| Unlevered beta | 0.29 | 0.8 |
| Relevered beta | 0.12 | 0.91 |
| Adjusted relevered beta | 0.41 | 0.94 |
VYCO'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 VYCO:
cost_of_equity (7.95%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.41) + 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.