BFSA.DE WACC - Weighted Average Cost of Capital
The WACC of Befesa SA (BFSA.DE) is 5.7%.
| Range | Selected | |
| Cost of equity | 5.5% - 7.9% | 6.7% |
| Tax rate | 17.1% - 19.0% | 18.05% |
| Cost of debt | 4.2% - 5.9% | 5.05% |
| WACC | 4.7% - 6.7% | 5.7% |
| Category | Low | High |
| Long-term bond rate | 2.8% | 3.3% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.53 | 0.68 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.5% | 7.9% |
| Tax rate | 17.1% | 19.0% |
| Debt/Equity ratio | 0.63 | 0.63 |
| Cost of debt | 4.2% | 5.9% |
| After-tax WACC | 4.7% | 6.7% |
| Selected WACC | 5.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BFSA.DE | Befesa SA | 0.64 | 1.47 | 0.97 |
| ATH.MI | Ambienthesis SpA | 1.15 | 0.48 | 0.25 |
| AUG.L | Augean PLC | 0.04 | 0.73 | 0.71 |
| AURE.PA | Aurea SA | 1.05 | 0.36 | 0.19 |
| BIFF.L | Biffa PLC | 0.51 | 0.87 | 0.61 |
| COM.PA | Cnim Groupe SA | 11.4 | 1.47 | 0.14 |
| GPE.PA | Groupe Pizzorno Environnement SA | 0.36 | 0.18 | 0.14 |
| MBR.WA | Mo-Bruk SA | 0.12 | 0.24 | 0.22 |
| OBL.WA | Orzel Bialy SA | 0.01 | 0.09 | 0.09 |
| SCHP.PA | Seche Environnement SA | 1.24 | 0.98 | 0.49 |
| Low | High | |
| Unlevered beta | 0.21 | 0.34 |
| Relevered beta | 0.3 | 0.52 |
| Adjusted relevered beta | 0.53 | 0.68 |
BFSA.DE'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 BFSA.DE:
cost_of_equity (6.70%) = risk_free_rate (3.05%) + equity_risk_premium (5.60%) * adjusted_beta (0.53) + 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.