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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Spectral MedicalTSX:EDT +2.26%11 WACC % is 9.43% as of Jul. 15, 2026, which is 8% below its 10-year median of 10.30. GuruFocus rates TSX:EDT with a GF Score™ of 11/100 and a GF Value™ of C$0.92 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 217 Medical Diagnostics & Research companies, Spectral Medical ranks worse than 53% on this metric.
As of today (2026-07-15), Spectral Medical's weighted average cost of capital is 9.43%%. Spectral Medical's ROIC % is -20.66% (calculated using TTM income statement data).
Spectral Medical earns returns that do not match up to its cost of capital. It will destroy value as it grows.
For a comprehensive WACC calculation, please access the WACC Calculator.
Spectral Medical (TSX:EDT) 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, Spectral Medical's weighted average cost of capital is 9.43%%. Spectral Medical's ROIC % is -20.66% (calculated using TTM income statement data).
Spectral Medical earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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
Spectral Medical WACC % Historical Data
* Premium members only.
The historical data trend for Spectral Medical'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 Diagnostics & Research subindustry, Spectral Medical'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.
Spectral Medical WACC % vs Medical Diagnostics & Research Industry
For the Medical Diagnostics & Research industry and Healthcare sector, Spectral Medical's WACC % distribution charts can be found below:
* The bar in red indicates where Spectral Medical'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, Spectral Medical's market capitalization (E) is C$399.050 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, Spectral Medical's latest one-year quarterly average Book Value of Debt (D) is C$19.6728 Mil.
a) weight of equity = E / (E + D) = 399.050 / (399.050 + 19.6728) = 0.953
b) weight of debt = D / (E + D) = 19.6728 / (399.050 + 19.6728) = 0.047
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 3.5415%. 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. Spectral Medical's beta is 0.8224.
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 = 3.5415% + 0.8224 * 6% = 8.4759%
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, Spectral Medical's interest expense (positive number) was C$5.681 Mil. Its total Book Value of Debt (D) is C$19.6728 Mil.
Cost of Debt = 5.681 / 19.6728 = 28.8774%.
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 = 0 / -38.021 = 0%.
Spectral Medical'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)
=
0.953
*
8.4759%
+
0.047
*
28.8774%
*
(1 - 0%)
=
9.43%
* 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.
Spectral Medical (TSX:EDT) has a WACC % of 9.43% as of Jul. 15, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Spectral Medical and its competitors. This is near median its historical median of 10.30. Over the past decade, Spectral Medical's WACC % has ranged from 3.76 to 21.91. According to the industry distribution chart, Spectral Medical ranks #115 out of 217 companies in the Medical Diagnostics & Research industry, placing it in the top 53%.
Is Spectral Medical's WACC % too high?
Spectral Medical's current WACC % of 9.43% is near median its 10-year median of 10.30. Over the past 10 years, this metric has ranged from a low of 3.76 to a high of 21.91. The Medical Diagnostics & Research industry median WACC % is 9.02. Spectral Medical's value of 9.43% is 4.5% above this industry median. Based on the distribution chart, Spectral Medical ranks #115 out of 217 companies in the Medical Diagnostics & Research industry, which is below the industry midpoint. Overall, Spectral Medical has a GF Score™ of 11/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Spectral Medical's WACC % compare to TMO and DHR?
According to the Medical Diagnostics & Research industry distribution chart, Spectral Medical ranks #115 out of 217 companies for WACC %. This places Spectral Medical in the lower half of its industry. The industry median WACC % is 9.02. Spectral Medical's value of 9.43% is 4.5% above this benchmark. Historically, Spectral Medical's own WACC % has ranged from 3.76 to 21.91 over the past decade. While the company's 10-year median is 10.30 vs. the industry median of 9.02, Spectral Medical has consistently been above 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 Diagnostics & Research company?
The median WACC % among Medical Diagnostics & Research companies is 9.02, based on 217 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. Spectral Medical's current WACC % of 9.43% is 4.5% above 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 Spectral Medical and its competitors. For the Medical Diagnostics & Research industry, the median WACC % is 9.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Spectral Medical's current WACC % is 9.43%, which is near median its own 10-year median of 10.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Spectral Medical stock overvalued right now?
Based on GuruFocus' analysis, Spectral Medical (TSX:EDT) is currently considered Significantly Overvalued. The stock's GF Value™ is C$0.92, compared to a current price of C$1.36 — trading 47.8% above its estimated fair value. The current WACC % is 9.43%, which is near median its 10-year median of 10.30 and 4.5% above the Medical Diagnostics & Research industry median of 9.02. Spectral Medical's overall GF Score™ is 11/100 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 Spectral Medical (TSX:EDT), the current WACC % is 9.43% as of Jul. 15, 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 Spectral Medical (TSX:EDT) Overvalued in 2026?
Based on GuruFocus' analysis, Spectral Medical stock appears to be overvalued.
The current stock price of C$1.36 is trading 47.8% above its estimated GF Value™ of C$0.92.
GuruFocus considers Spectral Medical to be Significantly Overvalued.
Key valuation signals for TSX:EDT:
WACC %: 9.43% (near median its 10-year median of 10.30)
GF Value™: C$0.92 vs. price of C$1.36 (47.8% above fair value)
Industry Position: 4.5% above the Medical Diagnostics & Research median (#115 of 217)
No single metric tells the full story. See the TSX:EDT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Spectral Medical Inc is focused on the development and commercialization of a treatment for septic shock utilizing its endotoxin activity assay (EAA) diagnostic and the Toraymyxin therapeutic. The company also manufactures and sells proprietary reagents. The product line of the company consists of proprietary biochemical, EAA, and instrumentation. Its products include an endotoxin activity assay, a rapid in-vitro diagnostic test used to measure endotoxin levels in blood, and a polymyxin B hemoperfusion device designed to remove endotoxin from the bloodstream. The company's proprietary reagents include recombinant proteins, antibodies, and calibrators used in research and diagnostic applications.
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