OTS.WA WACC - Weighted Average Cost of Capital

The WACC of OT Logistics SA (OTS.WA) is 13.2%.

The Cost of Equity of OT Logistics SA (OTS.WA) is 11.65%.

The Cost of Debt of OT Logistics SA (OTS.WA) is 14.95%.

	Range	Selected
Cost of equity	10.00% - 13.30%	11.65%
Tax rate	4.00% - 6.60%	5.30%
Cost of debt	4.40% - 25.50%	14.95%
WACC	6.1% - 20.4%	13.2%

WACC

OTS.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.7	0.92

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.00%	13.30%

Tax rate	4.00%	6.60%
Debt/Equity ratio	2.08	2.08
Cost of debt	4.40%	25.50%

After-tax WACC	6.1%	20.4%


Selected WACC	13.2%

OTS.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 OTS.WA:

cost_of_equity (11.65%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.7) + 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.