ORIGO.IC WACC - Weighted Average Cost of Capital
The WACC of Origo hf (ORIGO.IC) is 11.5%.
| Range | Selected | |
| Cost of equity | 11.5% - 13.4% | 12.45% |
| Tax rate | 4.6% - 7.6% | 6.1% |
| Cost of debt | 8.2% - 8.8% | 8.5% |
| WACC | 10.7% - 12.3% | 11.5% |
| Category | Low | High |
| Long-term bond rate | 7.1% | 7.6% |
| Equity market risk premium | 6.3% | 7.3% |
| Adjusted beta | 0.7 | 0.72 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 11.5% | 13.4% |
| Tax rate | 4.6% | 7.6% |
| Debt/Equity ratio | 0.26 | 0.26 |
| Cost of debt | 8.2% | 8.8% |
| After-tax WACC | 10.7% | 12.3% |
| Selected WACC | 11.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ORIGO.IC | Origo hf | 0.26 | 1.03 | 0.83 |
| ALEMK.BR | Emakina Group SA | 0.14 | 1.49 | 1.31 |
| B3.ST | B3 Consulting Group AB (publ) | 0.55 | 0.69 | 0.45 |
| CTAC.AS | Ctac NV | 0.18 | 0.01 | 0.01 |
| DIGIA.HE | Digia Oyj | 0.16 | 0.54 | 0.47 |
| GLINT.LS | Glintt Global Intelligent Technologies SA | 0.84 | -0.15 | -0.08 |
| MUN.PA | Micropole SA | 1.1 | 0.87 | 0.43 |
| NBA.LS | Novabase SGPS SA | 0.1 | 0.51 | 0.47 |
| RCN.L | Redcentric PLC | 0.38 | 0.03 | 0.02 |
| SIILI.HE | Siili Solutions Oyj | 0.26 | 1.03 | 0.83 |
| Low | High | |
| Unlevered beta | 0.44 | 0.47 |
| Relevered beta | 0.55 | 0.58 |
| Adjusted relevered beta | 0.7 | 0.72 |
ORIGO.IC'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 ORIGO.IC:
cost_of_equity (12.45%) = risk_free_rate (7.35%) + equity_risk_premium (6.80%) * adjusted_beta (0.7) + 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.