BFIT.AS WACC - Weighted Average Cost of Capital

The WACC of Basic Fit NV (BFIT.AS) is 4.9%.

The Cost of Equity of Basic Fit NV (BFIT.AS) is 6.15%.

The Cost of Debt of Basic Fit NV (BFIT.AS) is 5.90%.

	Range	Selected
Cost of equity	4.70% - 7.60%	6.15%
Tax rate	28.70% - 34.80%	31.75%
Cost of debt	4.00% - 7.80%	5.90%
WACC	3.6% - 6.1%	4.9%

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	0.41	0.66

Additional risk adjustments	0.0%	0.5%
Cost of equity	4.70%	7.60%

Tax rate	28.70%	34.80%
Debt/Equity ratio	1.42	1.42
Cost of debt	4.00%	7.80%

After-tax WACC	3.6%	6.1%


Selected WACC	4.9%

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 (6.15%) = risk_free_rate (2.85%) + equity_risk_premium (5.60%) * adjusted_beta (0.41) + 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.