OTS.WA
OT Logistics SA
Price:  
15.70 
PLN
Volume:  
2,002.00
Poland | Marine
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OTS.WA WACC - Weighted Average Cost of Capital

The WACC of OT Logistics SA (OTS.WA) is 7.4%.

The Cost of Equity of OT Logistics SA (OTS.WA) is 11.45%.
The Cost of Debt of OT Logistics SA (OTS.WA) is 6.00%.

Range Selected
Cost of equity 9.70% - 13.20% 11.45%
Tax rate 6.70% - 10.50% 8.60%
Cost of debt 5.00% - 7.00% 6.00%
WACC 6.3% - 8.5% 7.4%
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 0.66 0.91
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.70% 13.20%
Tax rate 6.70% 10.50%
Debt/Equity ratio 2.09 2.09
Cost of debt 5.00% 7.00%
After-tax WACC 6.3% 8.5%
Selected WACC 7.4%

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 (11.45%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.66) + 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.