OML.WA WACC - Weighted Average Cost of Capital

The WACC of One More Level SA (OML.WA) is 9.2%.

The Cost of Equity of One More Level SA (OML.WA) is 9.35%.

The Cost of Debt of One More Level SA (OML.WA) is 5.05%.

	Range	Selected
Cost of equity	8.30% - 10.40%	9.35%
Tax rate	11.30% - 17.10%	14.20%
Cost of debt	4.00% - 6.10%	5.05%
WACC	8.2% - 10.3%	9.2%

WACC

OML.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.43	0.53

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.30%	10.40%

Tax rate	11.30%	17.10%
Debt/Equity ratio	0.02	0.02
Cost of debt	4.00%	6.10%

After-tax WACC	8.2%	10.3%


Selected WACC	9.2%

OML.WA'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 OML.WA:

cost_of_equity (9.35%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.43) + 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.