ORC.B.V
Orca Exploration Group Inc
Price:  
2.94 
CAD
Volume:  
1,203.00
Tanzania, United Republic of | Oil, Gas & Consumable Fuels
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ORC.B.V WACC - Weighted Average Cost of Capital

The WACC of Orca Exploration Group Inc (ORC.B.V) is 10.1%.

The Cost of Equity of Orca Exploration Group Inc (ORC.B.V) is 11.95%.
The Cost of Debt of Orca Exploration Group Inc (ORC.B.V) is 9.60%.

Range Selected
Cost of equity 10.50% - 13.40% 11.95%
Tax rate 43.80% - 48.40% 46.10%
Cost of debt 5.30% - 13.90% 9.60%
WACC 8.5% - 11.7% 10.1%
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 1.3 1.39
Additional risk adjustments 0.0% 0.5%
Cost of equity 10.50% 13.40%
Tax rate 43.80% 48.40%
Debt/Equity ratio 0.35 0.35
Cost of debt 5.30% 13.90%
After-tax WACC 8.5% 11.7%
Selected WACC 10.1%

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 (11.95%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (1.3) + 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.