ORON.TA WACC - Weighted Average Cost of Capital

The WACC of Oron Group Investments & Holdings Ltd (ORON.TA) is 8.6%.

The Cost of Equity of Oron Group Investments & Holdings Ltd (ORON.TA) is 12.20%.

The Cost of Debt of Oron Group Investments & Holdings Ltd (ORON.TA) is 5.90%.

	Range	Selected
Cost of equity	9.90% - 14.50%	12.20%
Tax rate	24.80% - 25.50%	25.15%
Cost of debt	5.40% - 6.40%	5.90%
WACC	7.2% - 10.0%	8.6%

WACC

ORON.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.83	1.21

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.90%	14.50%

Tax rate	24.80%	25.50%
Debt/Equity ratio	0.86	0.86
Cost of debt	5.40%	6.40%

After-tax WACC	7.2%	10.0%


Selected WACC	8.6%

ORON.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 ORON.TA:

cost_of_equity (12.20%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.83) + 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.