OSP.AX WACC - Weighted Average Cost of Capital
The WACC of Osprey Medical Inc (OSP.AX) is 5.9%.
| Range | Selected | |
| Cost of equity | 5.7% - 7.8% | 6.75% |
| Tax rate | 0.0% - 0.0% | 0% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.3% - 6.4% | 5.9% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.36 | 0.49 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.7% | 7.8% |
| Tax rate | 0.0% | 0.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.3% | 6.4% |
| Selected WACC | 5.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| OSP.AX | Osprey Medical Inc | 1.15 | 0 | 0 |
| 150840.KQ | IntroMedic Co Ltd | 0.01 | 0.04 | 0.04 |
| 226400.KQ | Osteonic Co Ltd | 0.16 | 0.35 | 0.3 |
| 246720.KQ | Asta Co Ltd | 0.03 | -0.16 | -0.16 |
| 8YY.SI | Biolidics Ltd | 0.05 | 0.25 | 0.24 |
| AMT.AX | Allegra Orthopaedics Ltd | 0.61 | -0.89 | -0.55 |
| AMV.VN | American Vietnamese Biotech Inc | 0.59 | 0.92 | 0.58 |
| AT1.AX | Atomo Diagnostics Ltd | 0.01 | -0.05 | -0.05 |
| CDX.AX | Cardiex Ltd | 0.18 | 1.54 | 1.31 |
| EFNC.TA | Erech Finance Cahalacha Ltd | 3.18 | 0.16 | 0.04 |
| UBI.AX | Universal Biosensors Inc | 0.07 | -0.01 | -0.01 |
| Low | High | |
| Unlevered beta | 0 | 0.04 |
| Relevered beta | 0.04 | 0.24 |
| Adjusted relevered beta | 0.36 | 0.49 |
OSP.AX'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 OSP.AX:
cost_of_equity (6.75%) = risk_free_rate (4.25%) + equity_risk_premium (5.10%) * adjusted_beta (0.36) + 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.