Ocean Outdoor Ltd (OOUT.L) WACC Analysis

As of December 15, 2025, Ocean Outdoor Ltd (OOUT.L) carries a Weighted Average Cost of Capital (WACC) of 7.7%. WACC reflects the blended rate Ocean Outdoor Ltd must pay to both equity and debt holders.

Within that, the cost of equity is 6.8%, the cost of debt is 7.0%, and the effective tax rate is 1.9%.

Breakdown of WACC Components

• Long-term bond rate: 2.4% – 2.9%
• Equity market risk premium: 4.8% – 5.8%
• Adjusted beta: 0.9 – 1.01
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.44

What It Means for Investors

With a selected WACC of 7.7%, Ocean Outdoor Ltd must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.