BGL.AX
Bellevue Gold Ltd
Price:  
0.96 
AUD
Volume:  
13,523,339.00
Australia | Metals & Mining
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

BGL.AX WACC - Weighted Average Cost of Capital

The WACC of Bellevue Gold Ltd (BGL.AX) is 9.0%.

The Cost of Equity of Bellevue Gold Ltd (BGL.AX) is 9.85%.
The Cost of Debt of Bellevue Gold Ltd (BGL.AX) is 7.00%.

Range Selected
Cost of equity 8.40% - 11.30% 9.85%
Tax rate 30.00% - 30.00% 30.00%
Cost of debt 7.00% - 7.00% 7.00%
WACC 7.8% - 10.2% 9.0%
WACC

BGL.AX WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.85 1.03
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.40% 11.30%
Tax rate 30.00% 30.00%
Debt/Equity ratio 0.21 0.21
Cost of debt 7.00% 7.00%
After-tax WACC 7.8% 10.2%
Selected WACC 9.0%

BGL.AX'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 BGL.AX:

cost_of_equity (9.85%) = risk_free_rate (4.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.85) + 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.