OZE.WA WACC - Weighted Average Cost of Capital

The WACC of Oze Capital SA (OZE.WA) is 9.5%.

The Cost of Equity of Oze Capital SA (OZE.WA) is 10.00%.

The Cost of Debt of Oze Capital SA (OZE.WA) is 6.60%.

	Range	Selected
Cost of equity	8.80% - 11.20%	10.00%
Tax rate	19.60% - 22.30%	20.95%
Cost of debt	6.60% - 6.60%	6.60%
WACC	8.4% - 10.6%	9.5%

WACC

OZE.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.51	0.64

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.80%	11.20%

Tax rate	19.60%	22.30%
Debt/Equity ratio	0.11	0.11
Cost of debt	6.60%	6.60%

After-tax WACC	8.4%	10.6%


Selected WACC	9.5%

OZE.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 OZE.WA:

cost_of_equity (10.00%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.51) + 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.