BGHL.AS WACC - Weighted Average Cost of Capital
The WACC of Boussard and Gavaudan Holding Ltd (BGHL.AS) is 7.3%.
| Range | Selected | |
| Cost of equity | 8.8% - 12.9% | 10.85% |
| Tax rate | 25.0% - 25.3% | 25.15% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.3% - 8.3% | 7.3% |
| Category | Low | High |
| Long-term bond rate | 2.6% | 3.1% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 1.23 | 1.53 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.8% | 12.9% |
| Tax rate | 25.0% | 25.3% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.3% | 8.3% |
| Selected WACC | 7.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BGHL.AS | Boussard and Gavaudan Holding Ltd | 0.96 | 0.29 | 0.17 |
| AEMC.L | Aberdeen Emerging Markets Investment Company Ltd | 0.04 | 0.78 | 0.76 |
| AUGM.L | Augmentum Fintech PLC | 0 | 1.43 | 1.42 |
| BPET.L | BMO Private Equity Trust PLC | 0.12 | 0.85 | 0.78 |
| BRFI.L | BlackRock Frontiers Investment Trust PLC | 0 | 1.03 | 1.03 |
| CMHY.L | City Merchants High Yield Trust Ltd | 0.07 | 0.5 | 0.48 |
| HEFT.L | Henderson European Focus Trust PLC | 0.05 | 1.09 | 1.05 |
| HNE.L | Henderson Eurotrust PLC | 0.03 | 1.05 | 1.03 |
| JMI.L | JPmorgan Smaller Companies Investment Trust PLC | 0.12 | 1.68 | 1.54 |
| PCGH.L | Polar Capital Global Healthcare Trust PLC | 0 | 0.66 | 0.66 |
| VSL.L | VPC Specialty Lending Investments PLC | 1.23 | 0.96 | 0.5 |
| Low | High | |
| Unlevered beta | 0.76 | 1.03 |
| Relevered beta | 1.34 | 1.79 |
| Adjusted relevered beta | 1.23 | 1.53 |
BGHL.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 BGHL.AS:
cost_of_equity (10.85%) = risk_free_rate (2.85%) + equity_risk_premium (5.60%) * adjusted_beta (1.23) + 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.