OPL.WA WACC - Weighted Average Cost of Capital

The WACC of Orange Polska SA (OPL.WA) is 8.7%.

The Cost of Equity of Orange Polska SA (OPL.WA) is 10.15%.

The Cost of Debt of Orange Polska SA (OPL.WA) is 6.25%.

	Range	Selected
Cost of equity	9.00% - 11.30%	10.15%
Tax rate	17.40% - 18.30%	17.85%
Cost of debt	4.80% - 7.70%	6.25%
WACC	7.5% - 9.8%	8.7%

WACC

OPL.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.55	0.65

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.00%	11.30%

Tax rate	17.40%	18.30%
Debt/Equity ratio	0.4	0.4
Cost of debt	4.80%	7.70%

After-tax WACC	7.5%	9.8%


Selected WACC	8.7%

OPL.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 OPL.WA:

cost_of_equity (10.15%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.55) + 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.