OPG.WA WACC - Weighted Average Cost of Capital

The WACC of Cpi Fim SA (OPG.WA) is 11.3%.

The Cost of Equity of Cpi Fim SA (OPG.WA) is 9.80%.

The Cost of Debt of Cpi Fim SA (OPG.WA) is 14.75%.

	Range	Selected
Cost of equity	8.70% - 10.90%	9.80%
Tax rate	16.30% - 21.60%	18.95%
Cost of debt	4.00% - 25.50%	14.75%
WACC	4.6% - 17.9%	11.3%

WACC

OPG.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.51	0.6

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.70%	10.90%

Tax rate	16.30%	21.60%
Debt/Equity ratio	3.39	3.39
Cost of debt	4.00%	25.50%

After-tax WACC	4.6%	17.9%


Selected WACC	11.3%

OPG.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 OPG.WA:

cost_of_equity (9.80%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.51) + 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.