ORAP.PA
Orapi SA
Price:  
6.50 
EUR
Volume:  
24.00
France | Chemicals
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ORAP.PA WACC - Weighted Average Cost of Capital

The WACC of Orapi SA (ORAP.PA) is 9.6%.

The Cost of Equity of Orapi SA (ORAP.PA) is 10.05%.
The Cost of Debt of Orapi SA (ORAP.PA) is 13.50%.

Range Selected
Cost of equity 8.10% - 12.00% 10.05%
Tax rate 25.90% - 31.60% 28.75%
Cost of debt 4.00% - 23.00% 13.50%
WACC 4.8% - 14.4% 9.6%
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 0.88 1.17
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.10% 12.00%
Tax rate 25.90% 31.60%
Debt/Equity ratio 1.78 1.78
Cost of debt 4.00% 23.00%
After-tax WACC 4.8% 14.4%
Selected WACC 9.6%

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 (10.05%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.88) + 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.