OKEY.L
O'Key Group SA
Price:  
0.6 
USD
Volume:  
140,077
Luxembourg | Food & Staples Retailing

OKEY.L WACC - Weighted Average Cost of Capital

The WACC of O'Key Group SA (OKEY.L) is 5.9%.

The Cost of Equity of O'Key Group SA (OKEY.L) is 16.6%.
The Cost of Debt of O'Key Group SA (OKEY.L) is 5%.

RangeSelected
Cost of equity9.0% - 24.2%16.6%
Tax rate14.2% - 15.3%14.75%
Cost of debt5.0% - 5.0%5%
WACC4.9% - 6.9%5.9%
WACC

OKEY.L WACC calculation

CategoryLowHigh
Long-term bond rate1.7%2.2%
Equity market risk premium4.8%5.8%
Adjusted beta1.523.7
Additional risk adjustments0.0%0.5%
Cost of equity9.0%24.2%
Tax rate14.2%15.3%
Debt/Equity ratio
6.626.62
Cost of debt5.0%5.0%
After-tax WACC4.9%6.9%
Selected WACC5.9%

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.