BE WACC - Weighted Average Cost of Capital

The WACC of Bloom Energy Corp (BE) is 7.9%.

The Cost of Equity of Bloom Energy Corp (BE) is 7.65%.

The Cost of Debt of Bloom Energy Corp (BE) is 9.05%.

	Range	Selected
Cost of equity	6.70% - 8.60%	7.65%
Tax rate	0.50% - 0.60%	0.55%
Cost of debt	5.70% - 12.40%	9.05%
WACC	6.5% - 9.4%	7.9%

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	0.61	0.66

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.70%	8.60%

Tax rate	0.50%	0.60%
Debt/Equity ratio	0.27	0.27
Cost of debt	5.70%	12.40%

After-tax WACC	6.5%	9.4%


Selected WACC	7.9%

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 (7.65%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.61) + 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.