OTS.VI WACC - Weighted Average Cost of Capital

The WACC of Ottakringer Getraenke AG (OTS.VI) is 6.5%.

The Cost of Equity of Ottakringer Getraenke AG (OTS.VI) is 7.25%.

The Cost of Debt of Ottakringer Getraenke AG (OTS.VI) is 5.50%.

	Range	Selected
Cost of equity	6.00% - 8.50%	7.25%
Tax rate	24.40% - 27.60%	26.00%
Cost of debt	4.00% - 7.00%	5.50%
WACC	5.3% - 7.7%	6.5%

WACC

OTS.VI WACC calculation

Category	Low	High

Long-term bond rate	2.8%	3.3%
Equity market risk premium	5.7%	6.7%
Adjusted beta	0.56	0.7

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.00%	8.50%

Tax rate	24.40%	27.60%
Debt/Equity ratio	0.3	0.3
Cost of debt	4.00%	7.00%

After-tax WACC	5.3%	7.7%


Selected WACC	6.5%

OTS.VI'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 OTS.VI:

cost_of_equity (7.25%) = risk_free_rate (3.05%) + equity_risk_premium (6.20%) * adjusted_beta (0.56) + 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.