OGO.V WACC - Weighted Average Cost of Capital

The WACC of Organto Foods Inc (OGO.V) is 5.9%.

The Cost of Equity of Organto Foods Inc (OGO.V) is 6.30%.

The Cost of Debt of Organto Foods Inc (OGO.V) is 4.40%.

	Range	Selected
Cost of equity	5.50% - 7.10%	6.30%
Tax rate	0.40% - 0.80%	0.60%
Cost of debt	4.30% - 4.50%	4.40%
WACC	5.3% - 6.6%	5.9%

WACC

OGO.V WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.32	0.36

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.50%	7.10%

Tax rate	0.40%	0.80%
Debt/Equity ratio	0.21	0.21
Cost of debt	4.30%	4.50%

After-tax WACC	5.3%	6.6%


Selected WACC	5.9%

OGO.V'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 OGO.V:

cost_of_equity (6.30%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.32) + 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.