TransMedics GroupHAM:8T8 -9.99%69 WACC % is 8.88% as of Jun. 30, 2026, which is 33% below its 10-year median of 13.31. GuruFocus rates HAM:8T8 with a GF Score™ of 69/100 and a GF Value™ of €162.08. The stock has 9 warning signs investors should review. Among 866 Medical Devices & Instruments companies, TransMedics Group ranks worse than 96.19% on this metric.
As of today (2026-06-30), TransMedics Group's weighted average cost of capital is 8.88%%. TransMedics Group's ROIC % is 17.26% (calculated using TTM income statement data).
TransMedics Group generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
*Note: The beta of this company cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
For a comprehensive WACC calculation, please access the WACC Calculator.
TransMedics Group (HAM:8T8) WACC % Explanation
Because it costs money to raise capital. A firm that generates higher ROIC % than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, TransMedics Group's weighted average cost of capital is 8.88%%. TransMedics Group's ROIC % is 17.26% (calculated using TTM income statement data).
TransMedics Group generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
*Note: The beta of this company cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
Be Aware
1. GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding latest one-year quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together.
For companies that report quarterly, GuruFocus combines all of the most recent year's quarterly debt data from the beginning of the year to the year-end and calculates the average.
For companies that report semi-annually, GuruFocus combines all of the most recent year's semi-annual debt data from the start of the year to the year-end and calculates the average.
For companies that report annually, GuruFocus combines the beginning and ending annual debt data from the most recent year and then calculates the average.
2. The WACC formula discussed above does not include Preferred Stock. Please adjust if preferred stock is considered.
3. (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
4. GuruFocus uses the latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
Related Terms
TransMedics Group WACC % Historical Data
* Premium members only.
The historical data trend for TransMedics Group's WACC % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Medical Devices subindustry, TransMedics Group's WACC %, along with its competitors' market caps and WACC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
TransMedics Group WACC % vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, TransMedics Group's WACC % distribution charts can be found below:
* The bar in red indicates where TransMedics Group's WACC % falls into.
The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. The WACC is commonly referred to as the firm's cost of capital. Generally speaking, a company's assets are financed by debt and equity. WACC is the average of the costs of these sources of financing, each of which is weighted by its respective use in the given situation. By taking a weighted average, we can see how much interest the company has to pay for every dollar it finances.
WACC
=
E
/
(E + D)
*
Cost of Equity
+
D
/
(E + D)
*
Cost of Debt
*
(1 - Tax Rate)
1. Weights:
Generally speaking, a company's assets are financed by debt and equity. We need to calculate the weight of equity and the weight of debt.
The market value of equity (E) is also called "Market Cap". As of today, TransMedics Group's market capitalization (E) is €2042.152 Mil.
The market value of debt is typically difficult to calculate, therefore, GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding the latest one-year quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Mar. 2026, TransMedics Group's latest one-year quarterly average Book Value of Debt (D) is €512.4304 Mil.
a) weight of equity = E / (E + D) = 2042.152 / (2042.152 + 512.4304) = 0.7994
b) weight of debt = D / (E + D) = 512.4304 / (2042.152 + 512.4304) = 0.2006
2. Cost of Equity:
GuruFocus uses Capital Asset Pricing Model (CAPM) to calculate the required rate of return. The formula is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
a) GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate. It is updated daily. The current risk-free rate is 4.371%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default.
b) Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. TransMedics Group's beta cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
c) (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
Cost of Equity = 4.371% + 1 * 6% = 10.371%
3. Cost of Debt:
GuruFocus uses latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
As of Mar. 2026, TransMedics Group's interest expense (positive number) was €15.054 Mil. Its total Book Value of Debt (D) is €512.4304 Mil.
Cost of Debt = 15.054 / 512.4304 = 2.9378%.
4. Multiply by one minus TTM Tax Rate:
GuruFocus uses the most recent TTM Tax Expense divided by the most recent TTM Pre-Tax Income to calculate the tax rate. The calculated TTM tax rate is limited to between 0% and 100%. If the calculated tax rate is higher than 100%, it is set to 100%. If the calculated tax rate is less than 0%, it is set to 0%.
The latest calculated TTM Tax Rate = -70.502 / 76.807 = -91.79%, which is less than 0%. Therefore it's set to 0%.
TransMedics Group's Weighted Average Cost Of Capital (WACC) for Today is calculated as:
WACC
=
E / (E + D)
*
Cost of Equity
+
D / (E + D)
*
Cost of Debt
*
(1 - Tax Rate)
=
0.7994
*
10.371%
+
0.2006
*
2.9378%
*
(1 - 0%)
=
8.88%
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
TransMedics Group (HAM:8T8) has a WACC % of 8.88% as of Jun. 30, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on TransMedics Group and its competitors. This is 33% below median its historical median of 13.31. Over the past decade, TransMedics Group's WACC % has ranged from 7.21 to 22.98. According to the industry distribution chart, TransMedics Group ranks #833 out of 866 companies in the Medical Devices & Instruments industry, placing it in the top 96.2%.
Is TransMedics Group's WACC % too high?
TransMedics Group's current WACC % of 8.88% is 33% below median its 10-year median of 13.31. Over the past 10 years, this metric has ranged from a low of 7.21 to a high of 22.98. The Medical Devices & Instruments industry median WACC % is 9.23. TransMedics Group's value of 8.88% is 3.8% below this industry median. Based on the distribution chart, TransMedics Group ranks #833 out of 866 companies in the Medical Devices & Instruments industry, which is in the bottom quartile relative to peers. Overall, TransMedics Group has a GF Score™ of 69/100, reflecting its overall financial health beyond just this single metric.
How does TransMedics Group's WACC % compare to AXGN and BFLY?
According to the Medical Devices & Instruments industry distribution chart, TransMedics Group ranks #833 out of 866 companies for WACC %. This places TransMedics Group in the lower half of its industry. The industry median WACC % is 9.23. TransMedics Group's value of 8.88% is 3.8% below this benchmark. Historically, TransMedics Group's own WACC % has ranged from 7.21 to 22.98 over the past decade. While the company's 10-year median is 13.31 vs. the industry median of 9.23, TransMedics Group has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good WACC % for a Medical Devices & Instruments company?
The median WACC % among Medical Devices & Instruments companies is 9.23, based on 866 companies in the industry. Companies in the top quartile (top 25%) have a WACC % significantly above this median, while those in the bottom quartile fall well below. However, WACC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. TransMedics Group's current WACC % of 8.88% is 3.8% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high WACC % mean?
A high WACC % can signal that a stock is expensive relative to its fundamentals. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on TransMedics Group and its competitors. For the Medical Devices & Instruments industry, the median WACC % is 9.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TransMedics Group's current WACC % is 8.88%, which is 33% below median its own 10-year median of 13.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is TransMedics Group stock overvalued right now?
TransMedics Group (HAM:8T8) has a current WACC % of 8.88%. The stock's GF Value™ is €162.08, compared to a current price of €60.02 — trading 63% below its estimated fair value. The current WACC % is 8.88%, which is 33% below median its 10-year median of 13.31 and 3.8% below the Medical Devices & Instruments industry median of 9.23. TransMedics Group's overall GF Score™ is 69/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is WACC % calculated?
WACC % is calculated from a company's financial statements. For TransMedics Group (HAM:8T8), the current WACC % is 8.88% as of Jun. 30, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is TransMedics Group (HAM:8T8) Overvalued in 2026?
Based on GuruFocus' analysis, TransMedics Group stock appears to be undervalued.
The current stock price of €60.02 is trading 63% below its estimated GF Value™ of €162.08.
Key valuation signals for HAM:8T8:
WACC %: 8.88% (33% below median its 10-year median of 13.31)
GF Value™: €162.08 vs. price of €60.02 (63% below fair value)
Industry Position: 3.8% below the Medical Devices & Instruments median (#833 of 866)
No single metric tells the full story. See the HAM:8T8 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
TransMedics Group Inc is a commercial-stage medical technology company transforming organ transplant therapy for end-stage organ failure patients across multiple disease states. It has developed the Organ Care System (OCS) to comprehensively address the limitations of cold storage. The OCS is a portable organ perfusion, optimization, and monitoring system that utilizes technology to replicate near-physiologic conditions for donor organs outside of the human body. The company has developed and is commercializing a proprietary system to preserve and deliver human organs for transplant in a near-physiologic condition to address the limitations of cold storage organ preservation.
69GF Score
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