OMHE WACC - Weighted Average Cost of Capital
The WACC of Omni Health Inc (OMHE) is 5.8%.
| Range | Selected | |
| Cost of equity | 5.5% - 7.3% | 6.4% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 7.0% - 7.0% | 7% |
| WACC | 5.3% - 6.2% | 5.8% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.35 | 0.44 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.5% | 7.3% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 7.0% | 7.0% |
| After-tax WACC | 5.3% | 6.2% |
| Selected WACC | 5.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| OMHE | Omni Health Inc | 869.96 | -31.3 | -0.05 |
| BLFR | BlueFire Equipment Corp | 0.21 | 0.6 | 0.52 |
| FLRE | Flameret Inc | 11.22 | 0.06 | 0.01 |
| NHMD | Nate's Food Co | 245.32 | -0.15 | 0 |
| NUVI | Emo Capital Corp | 0 | 0.85 | 0.84 |
| RGBP | Regen BioPharma Inc | 0.69 | 0.2 | 0.13 |
| RWMI | Regalworks Media Inc | 1.02 | 1.77 | 1.02 |
| Low | High | |
| Unlevered beta | 0.06 | 0.37 |
| Relevered beta | 0.03 | 0.16 |
| Adjusted relevered beta | 0.35 | 0.44 |
OMHE'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 OMHE:
cost_of_equity (6.40%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.35) + 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.