BAH.WA WACC - Weighted Average Cost of Capital

The WACC of British Automotive Holding SA (BAH.WA) is 4.3%.

The Cost of Equity of British Automotive Holding SA (BAH.WA) is 8.75%.

The Cost of Debt of British Automotive Holding SA (BAH.WA) is 5.50%.

	Range	Selected
Cost of equity	6.80% - 10.70%	8.75%
Tax rate	29.20% - 32.00%	30.60%
Cost of debt	4.00% - 7.00%	5.50%
WACC	3.3% - 5.4%	4.3%

WACC

BAH.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.2	0.57

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.80%	10.70%

Tax rate	29.20%	32.00%
Debt/Equity ratio	8.11	8.11
Cost of debt	4.00%	7.00%

After-tax WACC	3.3%	5.4%


Selected WACC	4.3%

BAH.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 BAH.WA:

cost_of_equity (8.75%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.2) + 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.