OMH.AX
OM Holdings Ltd
Price:  
0.32 
AUD
Volume:  
283,997.00
Singapore | Metals & Mining
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OMH.AX WACC - Weighted Average Cost of Capital

The WACC of OM Holdings Ltd (OMH.AX) is 8.1%.

The Cost of Equity of OM Holdings Ltd (OMH.AX) is 10.30%.
The Cost of Debt of OM Holdings Ltd (OMH.AX) is 8.80%.

Range Selected
Cost of equity 8.30% - 12.30% 10.30%
Tax rate 30.90% - 39.70% 35.30%
Cost of debt 8.30% - 9.30% 8.80%
WACC 7.1% - 9.2% 8.1%
WACC

OMH.AX WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.83 1.19
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.30% 12.30%
Tax rate 30.90% 39.70%
Debt/Equity ratio 0.88 0.88
Cost of debt 8.30% 9.30%
After-tax WACC 7.1% 9.2%
Selected WACC 8.1%

OMH.AX'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 OMH.AX:

cost_of_equity (10.30%) = risk_free_rate (4.25%) + equity_risk_premium (5.60%) * 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.