Medallia Inc (MDLA) WACC Analysis

As of May 22, 2025, Medallia Inc (MDLA) carries a Weighted Average Cost of Capital (WACC) of 8.0%. WACC reflects the blended rate Medallia Inc must pay to both equity and debt holders.

Within that, the cost of equity is 6.9%, the cost of debt is 7.0%, and the effective tax rate is 0.8%.

Breakdown of WACC Components

• Long-term bond rate: 3.2% – 3.7%
• Equity market risk premium: 4.2% – 5.2%
• Adjusted beta: 0.88 – 0.97
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.08

What It Means for Investors

With a selected WACC of 8.0%, Medallia Inc must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a moderate financing cost structure.