The WACC of Oxurion NV (OXUR.BR) is 6.0%.
| Range | Selected | |
| Cost of equity | 4.10% - 31.30% | 17.70% |
| Tax rate | -% - -% | -% |
| Cost of debt | 4.00% - 7.20% | 5.60% |
| WACC | 4.0% - 7.9% | 6.0% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | -0.88 | 3 |
| Additional risk adjustments | 6.5% | 7.0% |
| Cost of equity | 4.10% | 31.30% |
| Tax rate | -% | -% |
| Debt/Equity ratio | 30.62 | 30.62 |
| Cost of debt | 4.00% | 7.20% |
| After-tax WACC | 4.0% | 7.9% |
| Selected WACC | 6.0% | |
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 OXUR.BR:
cost_of_equity (17.70%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (-0.88) + risk_adjustments (6.75%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.