Open Orphan PLC (ORPH.L) WACC Analysis

As of June 8, 2025, Open Orphan PLC (ORPH.L) carries a Weighted Average Cost of Capital (WACC) of 8.6%. WACC reflects the blended rate Open Orphan PLC must pay to both equity and debt holders.

Within that, the cost of equity is 7.6%, the cost of debt is 5.0%, and the effective tax rate is 19.0%.

Breakdown of WACC Components

• Long-term bond rate: 4.4% – 4.9%
• Equity market risk premium: 6.4% – 7.4%
• Adjusted beta: 0.49 – 0.59
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.02

What It Means for Investors

With a selected WACC of 8.6%, Open Orphan PLC must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a moderate financing cost structure.