BCC
Boise Cascade Co
Price:  
96.15 
USD
Volume:  
363,376.00
United States | Trading Companies & Distributors
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BCC WACC - Weighted Average Cost of Capital

The WACC of Boise Cascade Co (BCC) is 8.3%.

The Cost of Equity of Boise Cascade Co (BCC) is 8.95%.
The Cost of Debt of Boise Cascade Co (BCC) is 4.60%.

Range Selected
Cost of equity 8.00% - 9.90% 8.95%
Tax rate 25.00% - 25.10% 25.05%
Cost of debt 4.50% - 4.70% 4.60%
WACC 7.4% - 9.2% 8.3%
WACC

BCC WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.89 0.91
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.00% 9.90%
Tax rate 25.00% 25.10%
Debt/Equity ratio 0.13 0.13
Cost of debt 4.50% 4.70%
After-tax WACC 7.4% 9.2%
Selected WACC 8.3%

BCC'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 BCC:

cost_of_equity (8.95%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.89) + 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.