ORIN.TA WACC - Weighted Average Cost of Capital

The WACC of Orian SH M Ltd (ORIN.TA) is 7.7%.

The Cost of Equity of Orian SH M Ltd (ORIN.TA) is 9.95%.

The Cost of Debt of Orian SH M Ltd (ORIN.TA) is 5.85%.

	Range	Selected
Cost of equity	8.50% - 11.40%	9.95%
Tax rate	22.00% - 28.70%	25.35%
Cost of debt	4.70% - 7.00%	5.85%
WACC	6.6% - 8.8%	7.7%

WACC

ORIN.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	5.6%	6.6%
Adjusted beta	0.66	0.84

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.50%	11.40%

Tax rate	22.00%	28.70%
Debt/Equity ratio	0.68	0.68
Cost of debt	4.70%	7.00%

After-tax WACC	6.6%	8.8%


Selected WACC	7.7%

ORIN.TA'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 ORIN.TA:

cost_of_equity (9.95%) = risk_free_rate (5.05%) + equity_risk_premium (6.10%) * adjusted_beta (0.66) + 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.