ORON.TA WACC - Weighted Average Cost of Capital

The WACC of Oron Group Investments & Holdings Ltd (ORON.TA) is 9.6%.

The Cost of Equity of Oron Group Investments & Holdings Ltd (ORON.TA) is 11.90%.

The Cost of Debt of Oron Group Investments & Holdings Ltd (ORON.TA) is 5.95%.

	Range	Selected
Cost of equity	10.40% - 13.40%	11.90%
Tax rate	24.60% - 25.30%	24.95%
Cost of debt	5.50% - 6.40%	5.95%
WACC	8.5% - 10.8%	9.6%

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	0.91	1.06

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.40%	13.40%

Tax rate	24.60%	25.30%
Debt/Equity ratio	0.43	0.43
Cost of debt	5.50%	6.40%

After-tax WACC	8.5%	10.8%


Selected WACC	9.6%

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 (11.90%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.91) + 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.