BE WACC - Weighted Average Cost of Capital

The WACC of Bloom Energy Corp (BE) is 8.9%.

The Cost of Equity of Bloom Energy Corp (BE) is 7.30%.

The Cost of Debt of Bloom Energy Corp (BE) is 13.30%.

	Range	Selected
Cost of equity	6.40% - 8.20%	7.30%
Tax rate	0.50% - 0.60%	0.55%
Cost of debt	5.70% - 20.90%	13.30%
WACC	6.2% - 11.6%	8.9%

WACC

BE WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	4.6%	5.6%
Adjusted beta	0.54	0.6

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.40%	8.20%

Tax rate	0.50%	0.60%
Debt/Equity ratio	0.37	0.37
Cost of debt	5.70%	20.90%

After-tax WACC	6.2%	11.6%


Selected WACC	8.9%

BE'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 BE:

cost_of_equity (7.30%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.54) + 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.