BGHL.AS
Boussard and Gavaudan Holding Ltd
Price:  
27.8 
EUR
Volume:  
4,339
Guernsey | Finance and Insurance

BGHL.AS WACC - Weighted Average Cost of Capital

The WACC of Boussard and Gavaudan Holding Ltd (BGHL.AS) is 7.3%.

The Cost of Equity of Boussard and Gavaudan Holding Ltd (BGHL.AS) is 10.85%.
The Cost of Debt of Boussard and Gavaudan Holding Ltd (BGHL.AS) is 5%.

RangeSelected
Cost of equity8.8% - 12.9%10.85%
Tax rate25.0% - 25.3%25.15%
Cost of debt5.0% - 5.0%5%
WACC6.3% - 8.3%7.3%
WACC

BGHL.AS WACC calculation

CategoryLowHigh
Long-term bond rate2.6%3.1%
Equity market risk premium5.1%6.1%
Adjusted beta1.231.53
Additional risk adjustments0.0%0.5%
Cost of equity8.8%12.9%
Tax rate25.0%25.3%
Debt/Equity ratio
11
Cost of debt5.0%5.0%
After-tax WACC6.3%8.3%
Selected WACC7.3%

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.