OSP.AX
Osprey Medical Inc
Price:  
0.2 
USD
Volume:  
126,908
United States | Health Care Equipment & Supplies

OSP.AX WACC - Weighted Average Cost of Capital

The WACC of Osprey Medical Inc (OSP.AX) is 5.9%.

The Cost of Equity of Osprey Medical Inc (OSP.AX) is 6.75%.
The Cost of Debt of Osprey Medical Inc (OSP.AX) is 5%.

RangeSelected
Cost of equity5.7% - 7.8%6.75%
Tax rate0.0% - 0.0%0%
Cost of debt5.0% - 5.0%5%
WACC5.3% - 6.4%5.9%
WACC

OSP.AX WACC calculation

CategoryLowHigh
Long-term bond rate4.0%4.5%
Equity market risk premium4.6%5.6%
Adjusted beta0.360.49
Additional risk adjustments0.0%0.5%
Cost of equity5.7%7.8%
Tax rate0.0%0.0%
Debt/Equity ratio
11
Cost of debt5.0%5.0%
After-tax WACC5.3%6.4%
Selected WACC5.9%

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.