The WACC of B Communications Ltd (BCOM.TA) is 7.3%.
Range | Selected | |
Cost of equity | 22.5% - 33.6% | 28.05% |
Tax rate | 26.9% - 27.2% | 27.05% |
Cost of debt | 4.0% - 6.0% | 5% |
WACC | 5.9% - 8.8% | 7.3% |
Category | Low | High |
Long-term bond rate | 4.8% | 5.3% |
Equity market risk premium | 6.1% | 7.1% |
Adjusted beta | 2.89 | 3.9 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 22.5% | 33.6% |
Tax rate | 26.9% | 27.2% |
Debt/Equity ratio | 5.64 | 5.64 |
Cost of debt | 4.0% | 6.0% |
After-tax WACC | 5.9% | 8.8% |
Selected WACC | 7.3% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
BCOM.TA | B Communications Ltd | 5.64 | 1.26 | 0.25 |
002467.SZ | Net263 Ltd | 0 | 1.42 | 1.41 |
1310.HK | HKBN Ltd | 1.54 | 0.07 | 0.03 |
300025.SZ | Hangzhou Huaxing Chuangye Communication Technology Co Ltd | 0.06 | 1.9 | 1.82 |
3774.T | Internet Initiative Japan Inc | 0.14 | 0.39 | 0.36 |
JAS.BK | Jasmine International PCL | 0.1 | 2.05 | 1.92 |
MAQ.AX | Macquarie Telecom Group Ltd | 0.08 | 1.21 | 1.14 |
STCM.TA | Satcom Systems Ltd | 2.47 | 0.84 | 0.3 |
TATACOMM.NS | Tata Communications Ltd | 0.22 | 1.04 | 0.89 |
TM.KL | Telekom Malaysia Bhd | 0.2 | 0.61 | 0.53 |
VOC.AX | Vocus Group Ltd | 0.35 | 1.22 | 0.97 |
Low | High | |
Unlevered beta | 0.53 | 0.97 |
Relevered beta | 3.82 | 5.33 |
Adjusted relevered beta | 2.89 | 3.9 |
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 BCOM.TA:
cost_of_equity (28.05%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (2.89) + 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.