OPTRON.AT WACC - Weighted Average Cost of Capital

The WACC of Optronics Technologies SA (OPTRON.AT) is 7.5%.

The Cost of Equity of Optronics Technologies SA (OPTRON.AT) is 7.50%.

The Cost of Debt of Optronics Technologies SA (OPTRON.AT) is 17.00%.

	Range	Selected
Cost of equity	6.60% - 8.40%	7.50%
Tax rate	8.30% - 12.90%	10.60%
Cost of debt	7.00% - 27.00%	17.00%
WACC	6.6% - 8.4%	7.5%

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	0.42

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.60%	8.40%

Tax rate	8.30%	12.90%
Debt/Equity ratio	0	0
Cost of debt	7.00%	27.00%

After-tax WACC	6.6%	8.4%


Selected WACC	7.5%

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 (7.50%) = 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.