The WACC of Oponeo.pl SA (OPN.WA) is 11.6%.
Range | Selected | |
Cost of equity | 11.80% - 14.00% | 12.90% |
Tax rate | 19.70% - 19.80% | 19.75% |
Cost of debt | 4.10% - 7.00% | 5.55% |
WACC | 10.5% - 12.7% | 11.6% |
Category | Low | High |
Long-term bond rate | 5.5% | 6.0% |
Equity market risk premium | 6.3% | 7.3% |
Adjusted beta | 1 | 1.02 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 11.80% | 14.00% |
Tax rate | 19.70% | 19.80% |
Debt/Equity ratio | 0.19 | 0.19 |
Cost of debt | 4.10% | 7.00% |
After-tax WACC | 10.5% | 12.7% |
Selected WACC | 11.6% | |
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.WA:
cost_of_equity (12.90%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (1) + 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.