BIP.WA WACC - Weighted Average Cost of Capital

The WACC of Bio Planet SA (BIP.WA) is 8.0%.

The Cost of Equity of Bio Planet SA (BIP.WA) is 9.90%.

The Cost of Debt of Bio Planet SA (BIP.WA) is 6.15%.

	Range	Selected
Cost of equity	8.30% - 11.50%	9.90%
Tax rate	19.70% - 21.40%	20.55%
Cost of debt	5.30% - 7.00%	6.15%
WACC	6.8% - 9.3%	8.0%

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	0.44	0.68

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.30%	11.50%

Tax rate	19.70%	21.40%
Debt/Equity ratio	0.58	0.58
Cost of debt	5.30%	7.00%

After-tax WACC	6.8%	9.3%


Selected WACC	8.0%

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 (9.90%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.44) + 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.