ORNBV.HE WACC - Weighted Average Cost of Capital
The WACC of Orion Oyj (ORNBV.HE) is 7.9%.
| Range | Selected | |
| Cost of equity | 6.6% - 9.6% | 8.1% |
| Tax rate | 20.2% - 20.4% | 20.3% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 6.5% - 9.4% | 7.9% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 5.7% | 6.7% |
| Adjusted beta | 0.68 | 0.87 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.6% | 9.6% |
| Tax rate | 20.2% | 20.4% |
| Debt/Equity ratio | 0.04 | 0.04 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 6.5% | 9.4% |
| Selected WACC | 7.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ORNBV.HE | Orion Oyj | 0.04 | 0.87 | 0.84 |
| ALK B.CO | ALK-Abello A/S | 0.03 | 0.27 | 0.27 |
| ALM.MC | Almirall SA | 0.17 | 0.62 | 0.55 |
| DMP.DE | Dermapharm Holding SE | 0.56 | 0.59 | 0.4 |
| DPH.L | Dechra Pharmaceuticals PLC | 0.11 | 1.15 | 1.05 |
| HIK.L | Hikma Pharmaceuticals PLC | 0.22 | 0.88 | 0.75 |
| RICHTER.BD | Richter Gedeon Vegyeszeti Gyar Nyrt | 0.04 | 0.48 | 0.46 |
| TUB.BR | Financiere de Tubize SA | 0.01 | 1.73 | 1.72 |
| VIFN.SW | Vifor Pharma AG | 0.05 | 1.61 | 1.54 |
| VIRP.PA | Virbac SA | 0.11 | 0.48 | 0.44 |
| Low | High | |
| Unlevered beta | 0.51 | 0.79 |
| Relevered beta | 0.52 | 0.81 |
| Adjusted relevered beta | 0.68 | 0.87 |
ORNBV.HE'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 ORNBV.HE:
cost_of_equity (8.10%) = risk_free_rate (2.95%) + equity_risk_premium (6.20%) * adjusted_beta (0.68) + 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.