BBN.SW WACC - Weighted Average Cost of Capital
The WACC of Bellevue Group AG (BBN.SW) is 6.4%.
| Range | Selected | |
| Cost of equity | 5.5% - 8.3% | 6.9% |
| Tax rate | 22.0% - 23.8% | 22.9% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.1% - 7.6% | 6.4% |
| Category | Low | High |
| Long-term bond rate | 1.0% | 1.5% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.88 | 1.04 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.5% | 8.3% |
| Tax rate | 22.0% | 23.8% |
| Debt/Equity ratio | 0.17 | 0.17 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.1% | 7.6% |
| Selected WACC | 6.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BBN.SW | Bellevue Group AG | 0.17 | 0.6 | 0.53 |
| BRK.L | Brooks Macdonald Group PLC | 0.02 | 0.38 | 0.37 |
| DEA.MI | DeA Capital SpA | 0.17 | -0.01 | -0.01 |
| GHE.L | Gresham House PLC | 0 | 1.4 | 1.4 |
| GOZDE.IS | Gozde Girisim Sermayesi Yatirim Ortakligi AS | 0.06 | 1.43 | 1.37 |
| OCI.L | Oakley Capital Investments Ltd | 0.13 | 0.95 | 0.86 |
| PMI.L | Premier Miton Group PLC | 0.02 | 0.9 | 0.88 |
| RIV.L | River and Mercantile Group PLC | 0.03 | 1.03 | 1.01 |
| VPBN.SW | VP Bank AG | 0.41 | 0.42 | 0.32 |
| XPS.L | XPS Pensions Group PLC | 0.04 | 1.19 | 1.16 |
| Low | High | |
| Unlevered beta | 0.73 | 0.93 |
| Relevered beta | 0.82 | 1.06 |
| Adjusted relevered beta | 0.88 | 1.04 |
BBN.SW'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 BBN.SW:
cost_of_equity (6.90%) = risk_free_rate (1.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.88) + 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.