ODL.WA WACC - Weighted Average Cost of Capital
The WACC of Odlewnie Polskie SA (ODL.WA) is 9.8%.
| Range | Selected | |
| Cost of equity | 13.2% - 16.4% | 14.8% |
| Tax rate | 19.8% - 20.5% | 20.15% |
| Cost of debt | 6.1% - 6.1% | 6.1% |
| WACC | 9.0% - 10.6% | 9.8% |
| Category | Low | High |
| Long-term bond rate | 5.5% | 6.0% |
| Equity market risk premium | 6.3% | 7.3% |
| Adjusted beta | 1.21 | 1.35 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 13.2% | 16.4% |
| Tax rate | 19.8% | 20.5% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 6.1% | 6.1% |
| After-tax WACC | 9.0% | 10.6% |
| Selected WACC | 9.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ODL.WA | Odlewnie Polskie SA | 0 | 0.45 | 0.45 |
| BRSAN.IS | Borusan Mannesmann Boru Sanayi ve Ticaret AS | 0.75 | 1.59 | 0.99 |
| CELHA.IS | Celik Halat ve Tel Sanayii AS | 0.35 | 0.91 | 0.71 |
| CEMTS.IS | Cemtas Celik Makina Sanayi ve Ticaret AS | 0 | 0.98 | 0.98 |
| CMH.L | Chamberlin PLC | 2.76 | 0.22 | 0.07 |
| DMSAS.IS | Demisas Dokum Emaye Mamulleri Sanayi AS | 0.42 | 1.25 | 0.94 |
| ERBOS.IS | Erbosan Erciyas Boru Sanayii Ve Ticaret AS | 0.05 | 0.77 | 0.74 |
| KRDMD.IS | Kardemir Karabuk Demir Celik Sanayi ve Ticaret AS | 0.17 | 1.54 | 1.36 |
| PROFK.AT | Pipe Works L Girakian Profil SA | 4.55 | 1.15 | 0.25 |
| SCANA.OL | Scana ASA | 0.63 | 0.36 | 0.24 |
| ZRE.WA | Zaklad Budowy Maszyn Zremb Chojnice SA | 0.05 | 0.83 | 0.79 |
| Low | High | |
| Unlevered beta | 0.71 | 0.79 |
| Relevered beta | 1.31 | 1.52 |
| Adjusted relevered beta | 1.21 | 1.35 |
ODL.WA'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 ODL.WA:
cost_of_equity (14.80%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (1.21) + 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.