OPTRON.AT WACC - Weighted Average Cost of Capital

The WACC of Optronics Technologies SA (OPTRON.AT) is 8.7%.

The Cost of Equity of Optronics Technologies SA (OPTRON.AT) is 8.75%.

The Cost of Debt of Optronics Technologies SA (OPTRON.AT) is 11.10%.

	Range	Selected
Cost of equity	6.70% - 10.80%	8.75%
Tax rate	13.90% - 19.80%	16.85%
Cost of debt	4.00% - 18.20%	11.10%
WACC	6.7% - 10.8%	8.7%

WACC

OPTRON.AT WACC calculation

Category	Low	High

Long-term bond rate	3.3%	3.8%
Equity market risk premium	8.8%	9.8%
Adjusted beta	0.38	0.67

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.70%	10.80%

Tax rate	13.90%	19.80%
Debt/Equity ratio	0	0
Cost of debt	4.00%	18.20%

After-tax WACC	6.7%	10.8%


Selected WACC	8.7%

OPTRON.AT'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 OPTRON.AT:

cost_of_equity (8.75%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.38) + 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.