OMG.L WACC - Weighted Average Cost of Capital

The WACC of Oxford Metrics PLC (OMG.L) is 10.4%.

The Cost of Equity of Oxford Metrics PLC (OMG.L) is 10.70%.

The Cost of Debt of Oxford Metrics PLC (OMG.L) is 6.90%.

	Range	Selected
Cost of equity	9.00% - 12.40%	10.70%
Tax rate	7.20% - 11.40%	9.30%
Cost of debt	6.80% - 7.00%	6.90%
WACC	8.8% - 12.0%	10.4%

WACC

OMG.L WACC calculation

Category	Low	High

Long-term bond rate	4.0%	4.5%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.83	1.07

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.00%	12.40%

Tax rate	7.20%	11.40%
Debt/Equity ratio	0.08	0.08
Cost of debt	6.80%	7.00%

After-tax WACC	8.8%	12.0%


Selected WACC	10.4%

OMG.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 OMG.L:

cost_of_equity (10.70%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.83) + 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.