ORIN.TA WACC - Weighted Average Cost of Capital

The WACC of Orian SH M Ltd (ORIN.TA) is 7.2%.

The Cost of Equity of Orian SH M Ltd (ORIN.TA) is 12.00%.

The Cost of Debt of Orian SH M Ltd (ORIN.TA) is 6.90%.

	Range	Selected
Cost of equity	10.50% - 13.50%	12.00%
Tax rate	22.00% - 28.70%	25.35%
Cost of debt	6.80% - 7.00%	6.90%
WACC	6.9% - 7.6%	7.2%

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	1.01	1.15

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.50%	13.50%

Tax rate	22.00%	28.70%
Debt/Equity ratio	2.27	2.27
Cost of debt	6.80%	7.00%

After-tax WACC	6.9%	7.6%


Selected WACC	7.2%

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 (12.00%) = risk_free_rate (5.05%) + equity_risk_premium (6.10%) * adjusted_beta (1.01) + 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.