531996.BO WACC - Weighted Average Cost of Capital

The WACC of Odyssey Corporation Ltd (531996.BO) is 14.2%.

The Cost of Equity of Odyssey Corporation Ltd (531996.BO) is 14.30%.

The Cost of Debt of Odyssey Corporation Ltd (531996.BO) is 7.30%.

	Range	Selected
Cost of equity	12.40% - 16.20%	14.30%
Tax rate	2.60% - 12.40%	7.50%
Cost of debt	7.10% - 7.50%	7.30%
WACC	12.3% - 16.0%	14.2%

WACC

531996.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.66	0.89

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.40%	16.20%

Tax rate	2.60%	12.40%
Debt/Equity ratio	0.02	0.02
Cost of debt	7.10%	7.50%

After-tax WACC	12.3%	16.0%


Selected WACC	14.2%

531996.BO's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for 531996.BO:

cost_of_equity (14.30%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.66) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.