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 8.50%.

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

	Range	Selected
Cost of equity	7.60% - 9.40%	8.50%
Tax rate	22.10% - 24.10%	23.10%
Cost of debt	4.20% - 10.70%	7.45%
WACC	5.9% - 8.9%	7.4%

WACC

BIP.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.33	0.4

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.60%	9.40%

Tax rate	22.10%	24.10%
Debt/Equity ratio	0.66	0.66
Cost of debt	4.20%	10.70%

After-tax WACC	5.9%	8.9%


Selected WACC	7.4%

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.