The WACC of Opus Global Nyrt (OPUS.BD) is 11.4%.
Range | Selected | |
Cost of equity | 12.30% - 16.00% | 14.15% |
Tax rate | 16.00% - 19.40% | 17.70% |
Cost of debt | 6.00% - 11.70% | 8.85% |
WACC | 9.4% - 13.4% | 11.4% |
Category | Low | High |
Long-term bond rate | 6.4% | 6.9% |
Equity market risk premium | 7.9% | 8.9% |
Adjusted beta | 0.75 | 0.97 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 12.30% | 16.00% |
Tax rate | 16.00% | 19.40% |
Debt/Equity ratio | 0.66 | 0.66 |
Cost of debt | 6.00% | 11.70% |
After-tax WACC | 9.4% | 13.4% |
Selected WACC | 11.4% | |
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 OPUS.BD:
cost_of_equity (14.15%) = risk_free_rate (6.65%) + equity_risk_premium (8.40%) * adjusted_beta (0.75) + 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.