ORAP.PA WACC - Weighted Average Cost of Capital

The WACC of Orapi SA (ORAP.PA) is 10.0%.

The Cost of Equity of Orapi SA (ORAP.PA) is 11.05%.

The Cost of Debt of Orapi SA (ORAP.PA) is 13.50%.

	Range	Selected
Cost of equity	9.50% - 12.60%	11.05%
Tax rate	25.90% - 31.60%	28.75%
Cost of debt	4.00% - 23.00%	13.50%
WACC	5.3% - 14.6%	10.0%

WACC

ORAP.PA WACC calculation

Category	Low	High

Long-term bond rate	3.0%	3.5%
Equity market risk premium	5.8%	6.8%
Adjusted beta	1.12	1.26

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.50%	12.60%

Tax rate	25.90%	31.60%
Debt/Equity ratio	1.78	1.78
Cost of debt	4.00%	23.00%

After-tax WACC	5.3%	14.6%


Selected WACC	10.0%

ORAP.PA'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 ORAP.PA:

cost_of_equity (11.05%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (1.12) + 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.