OTM.WA WACC - Weighted Average Cost of Capital

The WACC of Zaklady Przemyslu Cukierniczego Otmuchow SA (OTM.WA) is 8.6%.

The Cost of Equity of Zaklady Przemyslu Cukierniczego Otmuchow SA (OTM.WA) is 9.20%.

The Cost of Debt of Zaklady Przemyslu Cukierniczego Otmuchow SA (OTM.WA) is 7.10%.

	Range	Selected
Cost of equity	7.60% - 10.80%	9.20%
Tax rate	11.10% - 12.70%	11.90%
Cost of debt	6.70% - 7.50%	7.10%
WACC	7.3% - 9.9%	8.6%

WACC

OTM.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.34	0.59

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.60%	10.80%

Tax rate	11.10%	12.70%
Debt/Equity ratio	0.28	0.28
Cost of debt	6.70%	7.50%

After-tax WACC	7.3%	9.9%


Selected WACC	8.6%

OTM.WA'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 OTM.WA:

cost_of_equity (9.20%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.34) + 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.