BD1.AX
BARD1 Life Sciences Ltd
Price:  
1.03 
AUD
Volume:  
114,701.00
Australia | Health Care Providers & Services
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BD1.AX WACC - Weighted Average Cost of Capital

The WACC of BARD1 Life Sciences Ltd (BD1.AX) is 7.9%.

The Cost of Equity of BARD1 Life Sciences Ltd (BD1.AX) is 8.00%.
The Cost of Debt of BARD1 Life Sciences Ltd (BD1.AX) is 5.00%.

Range Selected
Cost of equity 6.70% - 9.30% 8.00%
Tax rate 30.00% - 30.00% 30.00%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.7% - 9.2% 7.9%
WACC

BD1.AX WACC calculation

Category Low High
Long-term bond rate 3.7% 4.2%
Equity market risk premium 4.7% 5.7%
Adjusted beta 0.64 0.81
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.70% 9.30%
Tax rate 30.00% 30.00%
Debt/Equity ratio 0.01 0.01
Cost of debt 5.00% 5.00%
After-tax WACC 6.7% 9.2%
Selected WACC 7.9%

BD1.AX'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 BD1.AX:

cost_of_equity (8.00%) = risk_free_rate (3.95%) + equity_risk_premium (5.20%) * adjusted_beta (0.64) + 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.