OVRS.TA WACC - Weighted Average Cost of Capital

The WACC of Overseas Commerce Ltd (OVRS.TA) is 7.4%.

The Cost of Equity of Overseas Commerce Ltd (OVRS.TA) is 10.65%.

The Cost of Debt of Overseas Commerce Ltd (OVRS.TA) is 7.35%.

	Range	Selected
Cost of equity	9.30% - 12.00%	10.65%
Tax rate	25.00% - 25.40%	25.20%
Cost of debt	4.60% - 10.10%	7.35%
WACC	5.6% - 9.2%	7.4%

WACC

OVRS.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.73	0.86

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.30%	12.00%

Tax rate	25.00%	25.40%
Debt/Equity ratio	1.66	1.66
Cost of debt	4.60%	10.10%

After-tax WACC	5.6%	9.2%


Selected WACC	7.4%

OVRS.TA'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 OVRS.TA:

cost_of_equity (10.65%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.73) + 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.