OPTI.BR
Crescent NV
Price:  
0.01 
EUR
Volume:  
4,561.00
Belgium | Communications Equipment
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OPTI.BR WACC - Weighted Average Cost of Capital

The WACC of Crescent NV (OPTI.BR) is 6.8%.

The Cost of Equity of Crescent NV (OPTI.BR) is 6.60%.
The Cost of Debt of Crescent NV (OPTI.BR) is 7.95%.

Range Selected
Cost of equity 5.30% - 7.90% 6.60%
Tax rate 1.90% - 5.60% 3.75%
Cost of debt 7.00% - 8.90% 7.95%
WACC 5.7% - 8.0% 6.8%
WACC

OPTI.BR WACC calculation

Category Low High
Long-term bond rate 2.9% 3.4%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.41 0.57
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.30% 7.90%
Tax rate 1.90% 5.60%
Debt/Equity ratio 0.33 0.33
Cost of debt 7.00% 8.90%
After-tax WACC 5.7% 8.0%
Selected WACC 6.8%

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 (6.60%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.41) + 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.