Viemed Healthcare Inc (VMD.TO) WACC Analysis

As of May 22, 2025, Viemed Healthcare Inc (VMD.TO) carries a Weighted Average Cost of Capital (WACC) of 8.5%. WACC reflects the blended rate Viemed Healthcare Inc must pay to both equity and debt holders.

Within that, the cost of equity is 7.2%, the cost of debt is 4.3%, and the effective tax rate is 13.2%.

Breakdown of WACC Components

• Long-term bond rate: 3.6% – 4.1%
• Equity market risk premium: 5.5% – 6.5%
• Adjusted beta: 0.67 – 0.82
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0

What It Means for Investors

With a selected WACC of 8.5%, Viemed Healthcare Inc must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a moderate financing cost structure.