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

The WACC of Orca Exploration Group Inc (ORC.B.V) is 10.2%.

The Cost of Equity of Orca Exploration Group Inc (ORC.B.V) is 12.50%.

The Cost of Debt of Orca Exploration Group Inc (ORC.B.V) is 9.50%.

	Range	Selected
Cost of equity	11.00% - 14.00%	12.50%
Tax rate	40.20% - 48.40%	44.30%
Cost of debt	4.50% - 14.50%	9.50%
WACC	8.4% - 12.0%	10.2%

WACC

ORC.B.V WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	5.1%	6.1%
Adjusted beta	1.4	1.49

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.00%	14.00%

Tax rate	40.20%	48.40%
Debt/Equity ratio	0.45	0.45
Cost of debt	4.50%	14.50%

After-tax WACC	8.4%	12.0%


Selected WACC	10.2%

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 (12.50%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (1.4) + 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.