OKEY.L WACC - Weighted Average Cost of Capital
The WACC of O'Key Group SA (OKEY.L) is 5.9%.
| Range | Selected | |
| Cost of equity | 9.0% - 24.2% | 16.6% |
| Tax rate | 14.2% - 15.3% | 14.75% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.9% - 6.9% | 5.9% |
| Category | Low | High |
| Long-term bond rate | 1.7% | 2.2% |
| Equity market risk premium | 4.8% | 5.8% |
| Adjusted beta | 1.52 | 3.7 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.0% | 24.2% |
| Tax rate | 14.2% | 15.3% |
| Debt/Equity ratio | 6.62 | 6.62 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.9% | 6.9% |
| Selected WACC | 5.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| OKEY.L | O'Key Group SA | 6.62 | 1.48 | 0.22 |
| ALECO.PA | Ecomiam SA | 0.14 | 0.04 | 0.04 |
| B4B.DE | Metro AG | 2.08 | 0.5 | 0.18 |
| BIZIM.IS | Bizim Toptan Satis Magazalari AS | 0.26 | 0.9 | 0.74 |
| CA.PA | Carrefour SA | 2.59 | 0.25 | 0.08 |
| CRFSA.IS | CarrefourSA Carrefour Sabanci Ticaret Merkezi AS | 0.42 | 1.24 | 0.92 |
| DIA.MC | Distribuidora Internacional de Alimentacion SA | 0.6 | 0.39 | 0.26 |
| FAR.MI | Farmae SpA | 0.07 | 0.72 | 0.68 |
| LNTA.L | Lenta Plc | 1.94 | 1.04 | 0.39 |
| SOKM.IS | Sok Marketler Ticaret AS | 0.3 | 0.98 | 0.78 |
| Low | High | |
| Unlevered beta | 0.24 | 0.51 |
| Relevered beta | 1.78 | 5.03 |
| Adjusted relevered beta | 1.52 | 3.7 |
OKEY.L'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 OKEY.L:
cost_of_equity (16.60%) = risk_free_rate (1.95%) + equity_risk_premium (5.30%) * adjusted_beta (1.52) + 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.