ONE.TA WACC - Weighted Average Cost of Capital

The WACC of One Software Technologies Ltd (ONE.TA) is 11.8%.

The Cost of Equity of One Software Technologies Ltd (ONE.TA) is 12.25%.

The Cost of Debt of One Software Technologies Ltd (ONE.TA) is 5.40%.

	Range	Selected
Cost of equity	11.00% - 13.50%	12.25%
Tax rate	22.90% - 23.10%	23.00%
Cost of debt	5.40% - 5.40%	5.40%
WACC	10.7% - 13.0%	11.8%

WACC

ONE.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	1.01	1.08

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.00%	13.50%

Tax rate	22.90%	23.10%
Debt/Equity ratio	0.06	0.06
Cost of debt	5.40%	5.40%

After-tax WACC	10.7%	13.0%


Selected WACC	11.8%

ONE.TA'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 ONE.TA:

cost_of_equity (12.25%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (1.01) + 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.