ORANW.AS WACC - Weighted Average Cost of Capital

The WACC of Oranjewoud NV (ORANW.AS) is 8.5%.

The Cost of Equity of Oranjewoud NV (ORANW.AS) is 10.15%.

The Cost of Debt of Oranjewoud NV (ORANW.AS) is 11.45%.

	Range	Selected
Cost of equity	8.30% - 12.00%	10.15%
Tax rate	30.80% - 41.30%	36.05%
Cost of debt	8.30% - 14.60%	11.45%
WACC	6.9% - 10.1%	8.5%

WACC

ORANW.AS WACC calculation

Category	Low	High

Long-term bond rate	2.3%	2.8%
Equity market risk premium	6.6%	7.6%
Adjusted beta	0.91	1.14

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.30%	12.00%

Tax rate	30.80%	41.30%
Debt/Equity ratio	1.21	1.21
Cost of debt	8.30%	14.60%

After-tax WACC	6.9%	10.1%


Selected WACC	8.5%

ORANW.AS'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 ORANW.AS:

cost_of_equity (10.15%) = risk_free_rate (2.55%) + equity_risk_premium (7.10%) * adjusted_beta (0.91) + 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.