BGRP
Bluestem Group Inc
Price:  
0.01 
USD
Volume:  
76,380.00
United States | Internet & Direct Marketing Retail
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BGRP WACC - Weighted Average Cost of Capital

The WACC of Bluestem Group Inc (BGRP) is 10.7%.

The Cost of Equity of Bluestem Group Inc (BGRP) is 390.55%.
The Cost of Debt of Bluestem Group Inc (BGRP) is 12.55%.

Range Selected
Cost of equity 268.70% - 512.40% 390.55%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 9.50% - 15.60% 12.55%
WACC 8.0% - 13.3% 10.7%
WACC

BGRP WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 57.57 90.64
Additional risk adjustments 0.0% 0.5%
Cost of equity 268.70% 512.40%
Tax rate 26.20% 27.00%
Debt/Equity ratio 259.63 259.63
Cost of debt 9.50% 15.60%
After-tax WACC 8.0% 13.3%
Selected WACC 10.7%

BGRP'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 BGRP:

cost_of_equity (390.55%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (57.57) + 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.