OEX.WA WACC - Weighted Average Cost of Capital

The WACC of OEX SA (OEX.WA) is 9.0%.

The Cost of Equity of OEX SA (OEX.WA) is 10.20%.

The Cost of Debt of OEX SA (OEX.WA) is 6.00%.

	Range	Selected
Cost of equity	8.70% - 11.70%	10.20%
Tax rate	26.70% - 27.70%	27.20%
Cost of debt	5.40% - 6.60%	6.00%
WACC	7.7% - 10.2%	9.0%

WACC

OEX.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.51	0.71

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.70%	11.70%

Tax rate	26.70%	27.70%
Debt/Equity ratio	0.27	0.27
Cost of debt	5.40%	6.60%

After-tax WACC	7.7%	10.2%


Selected WACC	9.0%

OEX.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 OEX.WA:

cost_of_equity (10.20%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.51) + 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.