BFIT.AS WACC - Weighted Average Cost of Capital

The WACC of Basic Fit NV (BFIT.AS) is 4.1%.

The Cost of Equity of Basic Fit NV (BFIT.AS) is 5.85%.

The Cost of Debt of Basic Fit NV (BFIT.AS) is 4.25%.

	Range	Selected
Cost of equity	4.70% - 7.00%	5.85%
Tax rate	24.80% - 31.60%	28.20%
Cost of debt	4.00% - 4.50%	4.25%
WACC	3.6% - 4.5%	4.1%

WACC

BFIT.AS WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.42	0.56

Additional risk adjustments	0.0%	0.5%
Cost of equity	4.70%	7.00%

Tax rate	24.80%	31.60%
Debt/Equity ratio	1.66	1.66
Cost of debt	4.00%	4.50%

After-tax WACC	3.6%	4.5%


Selected WACC	4.1%

BFIT.AS'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 BFIT.AS:

cost_of_equity (5.85%) = risk_free_rate (2.85%) + equity_risk_premium (5.60%) * adjusted_beta (0.42) + 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.