BFT.WA WACC - Weighted Average Cost of Capital

The WACC of Benefit Systems SA (BFT.WA) is 8.6%.

The Cost of Equity of Benefit Systems SA (BFT.WA) is 9.60%.

The Cost of Debt of Benefit Systems SA (BFT.WA) is 5.30%.

	Range	Selected
Cost of equity	7.70% - 11.50%	9.60%
Tax rate	21.20% - 22.40%	21.80%
Cost of debt	4.00% - 6.60%	5.30%
WACC	6.9% - 10.4%	8.6%

WACC

BFT.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.35	0.68

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.70%	11.50%

Tax rate	21.20%	22.40%
Debt/Equity ratio	0.22	0.22
Cost of debt	4.00%	6.60%

After-tax WACC	6.9%	10.4%


Selected WACC	8.6%

BFT.WA'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 BFT.WA:

cost_of_equity (9.60%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.35) + 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.