BIP.WA
Bio Planet SA
Price:  
16.9 
PLN
Volume:  
2,406
Poland | Food & Staples Retailing

BIP.WA WACC - Weighted Average Cost of Capital

The WACC of Bio Planet SA (BIP.WA) is 7.4%.

The Cost of Equity of Bio Planet SA (BIP.WA) is 8.5%.
The Cost of Debt of Bio Planet SA (BIP.WA) is 7.45%.

RangeSelected
Cost of equity7.6% - 9.4%8.5%
Tax rate22.1% - 24.1%23.1%
Cost of debt4.2% - 10.7%7.45%
WACC5.9% - 8.9%7.4%
WACC

BIP.WA WACC calculation

CategoryLowHigh
Long-term bond rate5.5%6.0%
Equity market risk premium6.3%7.3%
Adjusted beta0.330.4
Additional risk adjustments0.0%0.5%
Cost of equity7.6%9.4%
Tax rate22.1%24.1%
Debt/Equity ratio
0.660.66
Cost of debt4.2%10.7%
After-tax WACC5.9%8.9%
Selected WACC7.4%

BIP.WA'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 BIP.WA:

cost_of_equity (8.50%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.33) + 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.