BBT.WA WACC - Weighted Average Cost of Capital
The WACC of Boombit SA (BBT.WA) is 9.1%.
| Range | Selected | |
| Cost of equity | 8.0% - 10.2% | 9.1% |
| Tax rate | 16.0% - 19.3% | 17.65% |
| Cost of debt | 6.1% - 11.1% | 8.6% |
| WACC | 8.0% - 10.2% | 9.1% |
| Category | Low | High |
| Long-term bond rate | 5.5% | 6.0% |
| Equity market risk premium | 6.3% | 7.3% |
| Adjusted beta | 0.39 | 0.5 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.0% | 10.2% |
| Tax rate | 16.0% | 19.3% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 6.1% | 11.1% |
| After-tax WACC | 8.0% | 10.2% |
| Selected WACC | 9.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BBT.WA | Boombit SA | 0 | 0.14 | 0.14 |
| ALCHI.PA | Alchimie SAS | 5.33 | 0 | 0 |
| CMM.MC | CommCenter SA | 1.24 | 0 | 0 |
| CRB.WA | Carbon Studio SA | 0.22 | 0.21 | 0.18 |
| KOLL.ST | Kollect on Demand Holding AB (publ) | 0.11 | 0.85 | 0.78 |
| NVP.MI | Nvp SpA | 0.51 | -0.1 | -0.07 |
| PAS.WA | Passus SA | 0 | 1.14 | 1.14 |
| SIM.WA | Simfabric SA | 0.04 | 0.37 | 0.36 |
| TOOP.L | Toople PLC | 4.03 | 0.03 | 0.01 |
| UD.MI | Unidata SpA | 0.66 | 0.55 | 0.36 |
| Low | High | |
| Unlevered beta | 0.09 | 0.25 |
| Relevered beta | 0.09 | 0.25 |
| Adjusted relevered beta | 0.39 | 0.5 |
BBT.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 BBT.WA:
cost_of_equity (9.10%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.39) + 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.