OPTI.BR
Crescent NV
Price:  
0.01 
EUR
Volume:  
1,612,896
Belgium | Communications Equipment

OPTI.BR WACC - Weighted Average Cost of Capital

The WACC of Crescent NV (OPTI.BR) is 7.1%.

The Cost of Equity of Crescent NV (OPTI.BR) is 6.5%.
The Cost of Debt of Crescent NV (OPTI.BR) is 9.45%.

RangeSelected
Cost of equity5.2% - 7.8%6.5%
Tax rate1.0% - 1.8%1.4%
Cost of debt7.0% - 11.9%9.45%
WACC5.6% - 8.6%7.1%
WACC

OPTI.BR WACC calculation

CategoryLowHigh
Long-term bond rate2.9%3.4%
Equity market risk premium6.0%7.0%
Adjusted beta0.390.56
Additional risk adjustments0.0%0.5%
Cost of equity5.2%7.8%
Tax rate1.0%1.8%
Debt/Equity ratio
0.280.28
Cost of debt7.0%11.9%
After-tax WACC5.6%8.6%
Selected WACC7.1%

OPTI.BR'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 OPTI.BR:

cost_of_equity (6.50%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.39) + 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.