OPAL.TA WACC - Weighted Average Cost of Capital

The WACC of Opal Balance Investments Ltd (OPAL.TA) is 8.4%.

The Cost of Equity of Opal Balance Investments Ltd (OPAL.TA) is 11.25%.

The Cost of Debt of Opal Balance Investments Ltd (OPAL.TA) is 5.90%.

	Range	Selected
Cost of equity	10.00% - 12.50%	11.25%
Tax rate	23.10% - 23.20%	23.15%
Cost of debt	4.80% - 7.00%	5.90%
WACC	7.3% - 9.4%	8.4%

WACC

OPAL.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.84	0.93

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.00%	12.50%

Tax rate	23.10%	23.20%
Debt/Equity ratio	0.75	0.75
Cost of debt	4.80%	7.00%

After-tax WACC	7.3%	9.4%


Selected WACC	8.4%

OPAL.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 OPAL.TA:

cost_of_equity (11.25%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.84) + 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.