OMIP.L WACC - Weighted Average Cost of Capital

The WACC of One Media IP Group PLC (OMIP.L) is 7.3%.

The Cost of Equity of One Media IP Group PLC (OMIP.L) is 7.60%.

The Cost of Debt of One Media IP Group PLC (OMIP.L) is 6.35%.

	Range	Selected
Cost of equity	6.70% - 8.50%	7.60%
Tax rate	24.30% - 25.20%	24.75%
Cost of debt	4.60% - 8.10%	6.35%
WACC	6.3% - 8.2%	7.3%

WACC

OMIP.L WACC calculation

Category	Low	High

Long-term bond rate	4.0%	4.5%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.45	0.51

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.70%	8.50%

Tax rate	24.30%	25.20%
Debt/Equity ratio	0.13	0.13
Cost of debt	4.60%	8.10%

After-tax WACC	6.3%	8.2%


Selected WACC	7.3%

OMIP.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 OMIP.L:

cost_of_equity (7.60%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.45) + 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.