BAMNB.AS WACC - Weighted Average Cost of Capital

The WACC of Koninklijke BAM Groep NV (BAMNB.AS) is 6.8%.

The Cost of Equity of Koninklijke BAM Groep NV (BAMNB.AS) is 7.25%.

The Cost of Debt of Koninklijke BAM Groep NV (BAMNB.AS) is 4.45%.

	Range	Selected
Cost of equity	6.20% - 8.30%	7.25%
Tax rate	12.00% - 15.90%	13.95%
Cost of debt	4.00% - 4.90%	4.45%
WACC	5.9% - 7.7%	6.8%

WACC

BAMNB.AS WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.72	0.77

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.20%	8.30%

Tax rate	12.00%	15.90%
Debt/Equity ratio	0.15	0.15
Cost of debt	4.00%	4.90%

After-tax WACC	5.9%	7.7%


Selected WACC	6.8%

BAMNB.AS'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 BAMNB.AS:

cost_of_equity (7.25%) = risk_free_rate (2.85%) + equity_risk_premium (5.60%) * adjusted_beta (0.72) + 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.