BGSF
BGSF Inc
Price:  
4.45 
USD
Volume:  
9,573.00
United States | Professional Services
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BGSF WACC - Weighted Average Cost of Capital

The WACC of BGSF Inc (BGSF) is 9.9%.

The Cost of Equity of BGSF Inc (BGSF) is 9.00%.
The Cost of Debt of BGSF Inc (BGSF) is 14.25%.

Range Selected
Cost of equity 7.50% - 10.50% 9.00%
Tax rate 21.30% - 23.30% 22.30%
Cost of debt 4.60% - 23.90% 14.25%
WACC 5.6% - 14.3% 9.9%
WACC

BGSF WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.79 1
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.50% 10.50%
Tax rate 21.30% 23.30%
Debt/Equity ratio 0.94 0.94
Cost of debt 4.60% 23.90%
After-tax WACC 5.6% 14.3%
Selected WACC 9.9%

BGSF'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 BGSF:

cost_of_equity (9.00%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.79) + 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.