ORDI.AS WACC - Weighted Average Cost of Capital

The WACC of Ordina NV (ORDI.AS) is 7.4%.

The Cost of Equity of Ordina NV (ORDI.AS) is 7.60%.

The Cost of Debt of Ordina NV (ORDI.AS) is 4.25%.

	Range	Selected
Cost of equity	6.40% - 8.80%	7.60%
Tax rate	28.60% - 29.00%	28.80%
Cost of debt	4.00% - 4.50%	4.25%
WACC	6.2% - 8.5%	7.4%

WACC

ORDI.AS WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.76	0.86

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.40%	8.80%

Tax rate	28.60%	29.00%
Debt/Equity ratio	0.06	0.06
Cost of debt	4.00%	4.50%

After-tax WACC	6.2%	8.5%


Selected WACC	7.4%

ORDI.AS'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 ORDI.AS:

cost_of_equity (7.60%) = risk_free_rate (2.85%) + equity_risk_premium (5.60%) * adjusted_beta (0.76) + 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.