OPF.WA WACC - Weighted Average Cost of Capital

The WACC of Open Finance SA (OPF.WA) is 6.6%.

The Cost of Equity of Open Finance SA (OPF.WA) is 252.90%.

The Cost of Debt of Open Finance SA (OPF.WA) is 6.10%.

	Range	Selected
Cost of equity	162.60% - 343.20%	252.90%
Tax rate	5.80% - 7.20%	6.50%
Cost of debt	5.20% - 7.00%	6.10%
WACC	5.5% - 7.8%	6.6%

WACC

OPF.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	24.78	45.87

Additional risk adjustments	0.0%	0.5%
Cost of equity	162.60%	343.20%

Tax rate	5.80%	7.20%
Debt/Equity ratio	258.64	258.64
Cost of debt	5.20%	7.00%

After-tax WACC	5.5%	7.8%


Selected WACC	6.6%

OPF.WA'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 OPF.WA:

cost_of_equity (252.90%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (24.78) + 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.