BCNV.TA WACC - Weighted Average Cost of Capital

The WACC of Brack Capital Properties NV (BCNV.TA) is 9.4%.

The Cost of Equity of Brack Capital Properties NV (BCNV.TA) is 9.25%.

The Cost of Debt of Brack Capital Properties NV (BCNV.TA) is 12.40%.

	Range	Selected
Cost of equity	7.50% - 11.00%	9.25%
Tax rate	21.20% - 23.30%	22.25%
Cost of debt	4.00% - 20.80%	12.40%
WACC	5.5% - 13.2%	9.4%

WACC

BCNV.TA WACC calculation

Category	Low	High

Long-term bond rate	3.4%	3.9%
Equity market risk premium	5.4%	6.4%
Adjusted beta	0.76	1.02

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.50%	11.00%

Tax rate	21.20%	23.30%
Debt/Equity ratio	0.84	0.84
Cost of debt	4.00%	20.80%

After-tax WACC	5.5%	13.2%


Selected WACC	9.4%

BCNV.TA'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 BCNV.TA:

cost_of_equity (9.25%) = risk_free_rate (3.65%) + equity_risk_premium (5.90%) * adjusted_beta (0.76) + 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.