ONTEX.BR WACC - Weighted Average Cost of Capital
The WACC of Ontex Group NV (ONTEX.BR) is 5.9%.
| Range | Selected | |
| Cost of equity | 7.4% - 12.0% | 9.7% |
| Tax rate | 26.4% - 32.1% | 29.25% |
| Cost of debt | 4.1% - 4.6% | 4.35% |
| WACC | 4.9% - 6.9% | 5.9% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.76 | 1.17 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.4% | 12.0% |
| Tax rate | 26.4% | 32.1% |
| Debt/Equity ratio | 1.37 | 1.37 |
| Cost of debt | 4.1% | 4.6% |
| After-tax WACC | 4.9% | 6.9% |
| Selected WACC | 5.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ONTEX.BR | Ontex Group NV | 1.37 | 0.74 | 0.37 |
| ECILC.IS | EIS Eczacibasi Ilac Sinai ve Finansal Yatirimlar Sanayi ve Ticaret AS | 0.03 | 0.63 | 0.61 |
| GLC.WA | Global Cosmed SA | 0.21 | 0.28 | 0.25 |
| ITP.PA | Interparfums SA | 0.05 | 1.02 | 0.98 |
| JBOG.PA | Jacques Bogart SA | 3.21 | 0.36 | 0.11 |
| LLQ.SW | Lalique Group SA | 0.25 | 0.89 | 0.76 |
| MSON B.ST | Midsona AB | 0.49 | 0.15 | 0.11 |
| SAR.AT | Gr Sarantis SA | 0.11 | 0.7 | 0.65 |
| SIS.L | Science in Sport PLC | 0.16 | 0.12 | 0.11 |
| W7L.L | Warpaint London PLC | 0.01 | 1.6 | 1.58 |
| Low | High | |
| Unlevered beta | 0.32 | 0.63 |
| Relevered beta | 0.64 | 1.25 |
| Adjusted relevered beta | 0.76 | 1.17 |
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.