BIN.AX
Bingo Industries Ltd
Price:  
3.32 
AUD
Volume:  
1,042,840
Australia | Commercial Services & Supplies

BIN.AX WACC - Weighted Average Cost of Capital

The WACC of Bingo Industries Ltd (BIN.AX) is 7.6%.

The Cost of Equity of Bingo Industries Ltd (BIN.AX) is 8.3%.
The Cost of Debt of Bingo Industries Ltd (BIN.AX) is 5%.

RangeSelected
Cost of equity7.2% - 9.4%8.3%
Tax rate30.9% - 31.1%31%
Cost of debt5.0% - 5.0%5%
WACC6.7% - 8.6%7.6%
WACC

BIN.AX WACC calculation

CategoryLowHigh
Long-term bond rate3.7%4.2%
Equity market risk premium4.7%5.7%
Adjusted beta0.750.83
Additional risk adjustments0.0%0.5%
Cost of equity7.2%9.4%
Tax rate30.9%31.1%
Debt/Equity ratio
0.170.17
Cost of debt5.0%5.0%
After-tax WACC6.7%8.6%
Selected WACC7.6%

BIN.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 BIN.AX:

cost_of_equity (8.30%) = risk_free_rate (3.95%) + equity_risk_premium (5.20%) * adjusted_beta (0.75) + 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.