BCP.LS WACC - Weighted Average Cost of Capital
The WACC of Banco Comercial Portugues SA (BCP.LS) is 9.3%.
| Range | Selected | |
| Cost of equity | 10.2% - 14.3% | 12.25% |
| Tax rate | 21.0% - 21.0% | 21% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.0% - 10.6% | 9.3% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.9% | 7.8% |
| Adjusted beta | 1.07 | 1.33 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.2% | 14.3% |
| Tax rate | 21.0% | 21.0% |
| Debt/Equity ratio | 0.56 | 0.56 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.0% | 10.6% |
| Selected WACC | 9.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BCP.LS | Banco Comercial Portugues SA | 0.56 | 0.88 | 0.61 |
| ALPHA.AT | Alpha Bank SA | 1.06 | 1.73 | 0.94 |
| BAMI.MI | Banco BPM SpA | 2 | 1.22 | 0.47 |
| BMPS.MI | Banca Monte dei Paschi di Siena SpA | 1.08 | 1.53 | 0.82 |
| BPE.MI | Bper Banca SpA | 2.2 | 1.49 | 0.54 |
| ETE.AT | National Bank of Greece SA | 0.48 | 1.71 | 1.24 |
| EUROB.AT | Eurobank Ergasias Services and Holdings SA | 0.8 | 1.42 | 0.87 |
| KOMB.PR | Komercni Banka as | 0.16 | 1.37 | 1.22 |
| NOFI.OL | Norwegian Finans Holding ASA | 0.35 | 1.76 | 1.38 |
| TPEIR.AT | Piraeus Financial Holdings SA | 0.7 | 1.81 | 1.17 |
| Low | High | |
| Unlevered beta | 0.85 | 1.03 |
| Relevered beta | 1.1 | 1.49 |
| Adjusted relevered beta | 1.07 | 1.33 |
BCP.LS'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 BCP.LS:
cost_of_equity (12.25%) = risk_free_rate (3.15%) + equity_risk_premium (7.35%) * adjusted_beta (1.07) + 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.