BHNY.TA WACC - Weighted Average Cost of Capital

The WACC of Beeio Honey Ltd (BHNY.TA) is 9.6%.

The Cost of Equity of Beeio Honey Ltd (BHNY.TA) is 12.80%.

The Cost of Debt of Beeio Honey Ltd (BHNY.TA) is 5.00%.

	Range	Selected
Cost of equity	11.30% - 14.30%	12.80%
Tax rate	23.00% - 23.00%	23.00%
Cost of debt	5.00% - 5.00%	5.00%
WACC	8.7% - 10.6%	9.6%

WACC

BHNY.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	5.6%	6.6%
Adjusted beta	1.15	1.28

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.30%	14.30%

Tax rate	23.00%	23.00%
Debt/Equity ratio	0.55	0.55
Cost of debt	5.00%	5.00%

After-tax WACC	8.7%	10.6%


Selected WACC	9.6%

BHNY.TA'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 BHNY.TA:

cost_of_equity (12.80%) = risk_free_rate (5.05%) + equity_risk_premium (6.10%) * adjusted_beta (1.15) + 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.