OPN.PA WACC - Weighted Average Cost of Capital

The WACC of Groupe Open SA (OPN.PA) is 7.1%.

The Cost of Equity of Groupe Open SA (OPN.PA) is 7.60%.

The Cost of Debt of Groupe Open SA (OPN.PA) is 4.25%.

	Range	Selected
Cost of equity	6.60% - 8.60%	7.60%
Tax rate	43.00% - 48.00%	45.50%
Cost of debt	4.00% - 4.50%	4.25%
WACC	6.2% - 8.0%	7.1%

WACC

OPN.PA WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	5.2%	6.2%
Adjusted beta	0.77	0.8

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.60%	8.60%

Tax rate	43.00%	48.00%
Debt/Equity ratio	0.09	0.09
Cost of debt	4.00%	4.50%

After-tax WACC	6.2%	8.0%


Selected WACC	7.1%

OPN.PA'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 OPN.PA:

cost_of_equity (7.60%) = risk_free_rate (2.85%) + equity_risk_premium (5.70%) * adjusted_beta (0.77) + 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.