OPTI.L WACC - Weighted Average Cost of Capital
The WACC of OptiBiotix Health PLC (OPTI.L) is 6.4%.
| Range | Selected | |
| Cost of equity | 6.8% - 9.2% | 8% |
| Tax rate | 1.5% - 2.9% | 2.2% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.8% - 7.1% | 6.4% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.46 | 0.61 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.8% | 9.2% |
| Tax rate | 1.5% | 2.9% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.8% | 7.1% |
| Selected WACC | 6.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| OPTI.L | OptiBiotix Health PLC | 0.93 | 1.92 | 1 |
| ABC.L | Abcam PLC | 0.08 | 0.39 | 0.36 |
| ADXN.SW | Addex Therapeutics Ltd | 0.05 | 0.37 | 0.36 |
| ALPHA.PA | Pharnext SA | 19402.47 | -0.69 | 0 |
| B8F.DE | Biofrontera AG | 1.3 | 0.33 | 0.15 |
| BOTHE.BR | Bone Therapeutics SA | 8.55 | 0.32 | 0.03 |
| CNWK.DE | Co.don AG | 0.3 | 1.23 | 0.95 |
| CYXO.ST | Cyxone AB | 0.13 | -0.83 | -0.74 |
| ECX.DE | Epigenomics AG | 7.04 | 0.61 | 0.08 |
| RTALB.IS | RTA Laboratuvarlari Biyolojik Urunler Ilac ve Makine Sanayi Ticaret AS | 0.03 | 0.33 | 0.32 |
| ADAP | Adaptimmune Therapeutics PLC | 0.65 | 0.19 | 0.11 |
| Low | High | |
| Unlevered beta | 0.11 | 0.32 |
| Relevered beta | 0.19 | 0.42 |
| Adjusted relevered beta | 0.46 | 0.61 |
OPTI.L'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.L:
cost_of_equity (8.00%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.46) + 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.