OP.ST WACC - Weighted Average Cost of Capital

The WACC of Oscar Properties Holding AB (OP.ST) is 15.2%.

The Cost of Equity of Oscar Properties Holding AB (OP.ST) is 80.15%.

The Cost of Debt of Oscar Properties Holding AB (OP.ST) is 15.45%.

	Range	Selected
Cost of equity	38.40% - 121.90%	80.15%
Tax rate	2.40% - 4.80%	3.60%
Cost of debt	8.40% - 22.50%	15.45%
WACC	8.4% - 22.1%	15.2%

WACC

OP.ST WACC calculation

Category	Low	High

Long-term bond rate	2.5%	3.0%
Equity market risk premium	5.1%	6.1%
Adjusted beta	7.03	19.41

Additional risk adjustments	0.0%	0.5%
Cost of equity	38.40%	121.90%

Tax rate	2.40%	4.80%
Debt/Equity ratio	160.25	160.25
Cost of debt	8.40%	22.50%

After-tax WACC	8.4%	22.1%


Selected WACC	15.2%

OP.ST'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 OP.ST:

cost_of_equity (80.15%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (7.03) + 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.