OKDBV.HE WACC - Weighted Average Cost of Capital
The WACC of Oriola Oyj (OKDBV.HE) is 6.4%.
| Range | Selected | |
| Cost of equity | 6.3% - 8.5% | 7.4% |
| Tax rate | 20.9% - 21.2% | 21.05% |
| Cost of debt | 4.9% - 7.0% | 5.95% |
| WACC | 5.4% - 7.4% | 6.4% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 5.7% | 6.7% |
| Adjusted beta | 0.63 | 0.71 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.3% | 8.5% |
| Tax rate | 20.9% | 21.2% |
| Debt/Equity ratio | 0.59 | 0.59 |
| Cost of debt | 4.9% | 7.0% |
| After-tax WACC | 5.4% | 7.4% |
| Selected WACC | 6.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| OKDBV.HE | Oriola Oyj | 0.59 | 0.57 | 0.39 |
| BLC.PA | Bastide le Confort Medical SA | 1.98 | 0.93 | 0.36 |
| BSGR.AS | B&S Group SA | 0.85 | -1.21 | -0.72 |
| GALE.SW | Galenica AG | 0.19 | 0.23 | 0.2 |
| ILM1.DE | Medios AG | 0.8 | 0.69 | 0.42 |
| NEU.WA | Neuca SA | 0.19 | 0.64 | 0.56 |
| SELEC.IS | Selcuk Ecza Deposu Ticaret ve Sanayi AS | 0.02 | 0.64 | 0.63 |
| UPR.IR | Uniphar PLC | 0.46 | 0.69 | 0.5 |
| AXRX | Amexdrug Corp | 3.54 | -0.08 | -0.02 |
| OMI | Owens & Minor Inc | 3.26 | -0.04 | -0.01 |
| Low | High | |
| Unlevered beta | 0.3 | 0.4 |
| Relevered beta | 0.45 | 0.57 |
| Adjusted relevered beta | 0.63 | 0.71 |
OKDBV.HE'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 OKDBV.HE:
cost_of_equity (7.40%) = risk_free_rate (2.95%) + equity_risk_premium (6.20%) * adjusted_beta (0.63) + 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.