ORL.WA WACC - Weighted Average Cost of Capital

The WACC of Orzel SA (ORL.WA) is 8.6%.

The Cost of Equity of Orzel SA (ORL.WA) is 10.20%.

The Cost of Debt of Orzel SA (ORL.WA) is 7.35%.

	Range	Selected
Cost of equity	8.10% - 12.30%	10.20%
Tax rate	15.20% - 15.60%	15.40%
Cost of debt	4.00% - 10.70%	7.35%
WACC	6.2% - 11.0%	8.6%

WACC

ORL.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.42	0.79

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.10%	12.30%

Tax rate	15.20%	15.60%
Debt/Equity ratio	0.72	0.72
Cost of debt	4.00%	10.70%

After-tax WACC	6.2%	11.0%


Selected WACC	8.6%

ORL.WA'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 ORL.WA:

cost_of_equity (10.20%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.42) + 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.