ORC.B.V
Orca Exploration Group Inc
Price:  
3.39 
CAD
Volume:  
1,203
Tanzania, United Republic of | Oil, Gas & Consumable Fuels

ORC.B.V WACC - Weighted Average Cost of Capital

The WACC of Orca Exploration Group Inc (ORC.B.V) is 8.8%.

The Cost of Equity of Orca Exploration Group Inc (ORC.B.V) is 9.5%.
The Cost of Debt of Orca Exploration Group Inc (ORC.B.V) is 10.75%.

RangeSelected
Cost of equity8.0% - 11.0%9.5%
Tax rate40.2% - 48.4%44.3%
Cost of debt7.0% - 14.5%10.75%
WACC7.3% - 10.3%8.8%
WACC

ORC.B.V WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium5.1%6.1%
Adjusted beta0.821.01
Additional risk adjustments0.0%0.5%
Cost of equity8.0%11.0%
Tax rate40.2%48.4%
Debt/Equity ratio
0.250.25
Cost of debt7.0%14.5%
After-tax WACC7.3%10.3%
Selected WACC8.8%

ORC.B.V'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 ORC.B.V:

cost_of_equity (9.50%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.82) + 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.