ONTEX.BR
Ontex Group NV
Price:  
6.3 
EUR
Volume:  
422,097
Belgium | Personal Products

ONTEX.BR WACC - Weighted Average Cost of Capital

The WACC of Ontex Group NV (ONTEX.BR) is 5.9%.

The Cost of Equity of Ontex Group NV (ONTEX.BR) is 9.7%.
The Cost of Debt of Ontex Group NV (ONTEX.BR) is 4.35%.

RangeSelected
Cost of equity7.4% - 12.0%9.7%
Tax rate26.4% - 32.1%29.25%
Cost of debt4.1% - 4.6%4.35%
WACC4.9% - 6.9%5.9%
WACC

ONTEX.BR WACC calculation

CategoryLowHigh
Long-term bond rate2.9%3.4%
Equity market risk premium6.0%7.0%
Adjusted beta0.761.17
Additional risk adjustments0.0%0.5%
Cost of equity7.4%12.0%
Tax rate26.4%32.1%
Debt/Equity ratio
1.371.37
Cost of debt4.1%4.6%
After-tax WACC4.9%6.9%
Selected WACC5.9%

ONTEX.BR'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 ONTEX.BR:

cost_of_equity (9.70%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.76) + 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.