MDA SpaceTSX:MDA -1.37%47 WACC % is 0.54% as of Jun. 28, 2026, which is 91% below its 10-year median of 6.25. GuruFocus rates TSX:MDA with a GF Score™ of 47/100 and a GF Value™ of C$31.65 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 358 Aerospace & Defense companies, MDA Space ranks better than 97.21% on this metric.
As of today (2026-06-28), MDA Space's weighted average cost of capital is 0.54%%. MDA Space's ROIC % is 3.46% (calculated using TTM income statement data).
MDA Space 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.
For a comprehensive WACC calculation, please access the WACC Calculator.
MDA Space (TSX:MDA) 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, MDA Space's weighted average cost of capital is 0.54%%. MDA Space's ROIC % is 3.46% (calculated using TTM income statement data).
MDA Space 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.
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
MDA Space WACC % Historical Data
* Premium members only.
The historical data trend for MDA Space'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 Aerospace & Defense subindustry, MDA Space'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.
MDA Space WACC % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, MDA Space's WACC % distribution charts can be found below:
* The bar in red indicates where MDA Space'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, MDA Space's market capitalization (E) is C$7004.149 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, MDA Space's latest one-year quarterly average Book Value of Debt (D) is C$350.46 Mil.
a) weight of equity = E / (E + D) = 7004.149 / (7004.149 + 350.46) = 0.9523
b) weight of debt = D / (E + D) = 350.46 / (7004.149 + 350.46) = 0.0477
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. MDA Space's beta is -0.5272.
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% + -0.5272 * 6% = 0.3783%
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, MDA Space's interest expense (positive number) was C$18.5 Mil. Its total Book Value of Debt (D) is C$350.46 Mil.
Cost of Debt = 18.5 / 350.46 = 5.2788%.
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 = 43.1 / 148.3 = 29.06%.
MDA Space'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)
=
0.9523
*
0.3783%
+
0.0477
*
5.2788%
*
(1 - 29.06%)
=
0.54%
* 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.
MDA Space (TSX:MDA) has a WACC % of 0.54% as of Jun. 28, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on MDA Space and its competitors. This is 91% below median its historical median of 6.25. According to the industry distribution chart, MDA Space ranks #10 out of 358 companies in the Aerospace & Defense industry, placing it in the top 2.8%.
Is MDA Space's WACC % too high?
MDA Space's current WACC % of 0.54% is 91% below median its 10-year median of 6.25. The Aerospace & Defense industry median WACC % is 9.79. MDA Space's value of 0.54% is 94.5% below this industry median. Based on the distribution chart, MDA Space ranks #10 out of 358 companies in the Aerospace & Defense industry, which is in the top quartile — a strong position relative to peers. Overall, MDA Space has a GF Score™ of 47/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does MDA Space's WACC % compare to GE and RTX?
According to the Aerospace & Defense industry distribution chart, MDA Space ranks #10 out of 358 companies for WACC %. This places MDA Space in the top 3% of its industry — outperforming the majority of peers. The industry median WACC % is 9.79. MDA Space's value of 0.54% is 94.5% below this benchmark. While the company's 10-year median is 6.25 vs. the industry median of 9.79, MDA Space 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 an Aerospace & Defense company?
The median WACC % among Aerospace & Defense companies is 9.79, based on 358 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. MDA Space's current WACC % of 0.54% is 94.5% 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 MDA Space and its competitors. For the Aerospace & Defense industry, the median WACC % is 9.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. MDA Space's current WACC % is 0.54%, which is 91% below median its own 10-year median of 6.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is MDA Space stock overvalued right now?
Based on GuruFocus' analysis, MDA Space (TSX:MDA) is currently considered Significantly Overvalued. The stock's GF Value™ is C$31.65, compared to a current price of C$50.48 — trading 59.5% above its estimated fair value. The current WACC % is 0.54%, which is 91% below median its 10-year median of 6.25 and 94.5% below the Aerospace & Defense industry median of 9.79. MDA Space's overall GF Score™ is 47/100 with 2 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 MDA Space (TSX:MDA), the current WACC % is 0.54% as of Jun. 28, 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 MDA Space (TSX:MDA) Overvalued in 2026?
Based on GuruFocus' analysis, MDA Space stock appears to be overvalued.
The current stock price of C$50.48 is trading 59.5% above its estimated GF Value™ of C$31.65.
GuruFocus considers MDA Space to be Significantly Overvalued.
Key valuation signals for TSX:MDA:
WACC %: 0.54% (91% below median its 10-year median of 6.25)
GF Value™: C$31.65 vs. price of C$50.48 (59.5% above fair value)
Industry Position: 94.5% below the Aerospace & Defense median (#10 of 358)
No single metric tells the full story. See the TSX:MDA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
MDA Space Ltd is a developer and manufacturer of technology and services to the space industry. It is an international space mission partner and robotics, satellite systems, and geo-intelligence pioneer. It is engaged in communications satellites, Earth and space observation, space exploration, and infrastructure. The Company collaborates and partners with governments and space agencies, commercial space companies, and defence and aerospace prime contractors in the space industry. Geographically, it generates the majority of its revenue from Canada.
47GF Score
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