ODL.WA WACC - Weighted Average Cost of Capital
The WACC of Odlewnie Polskie SA (ODL.WA) is 8.5%.
| Range | Selected | |
| Cost of equity | 9.1% - 15.3% | 12.2% |
| Tax rate | 19.8% - 20.3% | 20.05% |
| Cost of debt | 6.1% - 6.1% | 6.1% |
| WACC | 7.0% - 10.1% | 8.5% |
| Category | Low | High |
| Long-term bond rate | 5.5% | 6.0% |
| Equity market risk premium | 6.3% | 7.3% |
| Adjusted beta | 0.56 | 1.2 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.1% | 15.3% |
| Tax rate | 19.8% | 20.3% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 6.1% | 6.1% |
| After-tax WACC | 7.0% | 10.1% |
| Selected WACC | 8.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ODL.WA | Odlewnie Polskie SA | 0.87 | 0.42 | 0.25 |
| CELHA.IS | Celik Halat ve Tel Sanayii AS | 0.35 | 0.91 | 0.71 |
| 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 |
| LEBEK.AT | N Leventeris SA | 0.96 | 0.18 | 0.1 |
| MPITR.AT | Bitros Holding SA | 23.14 | -0.16 | -0.01 |
| OZBAL.IS | Ozbal Celik Boru Sanayi Ticaret ve Taahhut AS | 0.07 | 0.82 | 0.78 |
| PROFK.AT | Pipe Works L Girakian Profil SA | 3.66 | 1.01 | 0.26 |
| SCANA.OL | Scana ASA | 0.68 | 0.09 | 0.06 |
| ZRE.WA | Zaklad Budowy Maszyn Zremb Chojnice SA | 0.06 | 0.86 | 0.82 |
| Low | High | |
| Unlevered beta | 0.25 | 0.71 |
| Relevered beta | 0.34 | 1.3 |
| Adjusted relevered beta | 0.56 | 1.2 |
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 (12.20%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.56) + 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.