OI
O-I Glass Inc
Price:  
13.25 
USD
Volume:  
1,152,652.00
United States | Containers & Packaging
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

OI WACC - Weighted Average Cost of Capital

The WACC of O-I Glass Inc (OI) is 7.4%.

The Cost of Equity of O-I Glass Inc (OI) is 9.50%.
The Cost of Debt of O-I Glass Inc (OI) is 9.00%.

Range Selected
Cost of equity 8.20% - 10.80% 9.50%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 5.60% - 12.40% 9.00%
WACC 5.3% - 9.6% 7.4%
WACC

OI WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.95 1.07
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.20% 10.80%
Tax rate 26.20% 27.00%
Debt/Equity ratio 2.43 2.43
Cost of debt 5.60% 12.40%
After-tax WACC 5.3% 9.6%
Selected WACC 7.4%

OI'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 OI:

cost_of_equity (9.50%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.95) + 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.