BIS.AX
Bisalloy Steel Group Ltd
Price:  
4.02 
AUD
Volume:  
42,403
Australia | Metals & Mining

BIS.AX WACC - Weighted Average Cost of Capital

The WACC of Bisalloy Steel Group Ltd (BIS.AX) is 7.8%.

The Cost of Equity of Bisalloy Steel Group Ltd (BIS.AX) is 7.8%.
The Cost of Debt of Bisalloy Steel Group Ltd (BIS.AX) is 5.5%.

RangeSelected
Cost of equity6.5% - 9.1%7.8%
Tax rate27.7% - 28.2%27.95%
Cost of debt4.0% - 7.0%5.5%
WACC6.5% - 9.1%7.8%
WACC

BIS.AX WACC calculation

CategoryLowHigh
Long-term bond rate4.0%4.5%
Equity market risk premium5.1%6.1%
Adjusted beta0.490.67
Additional risk adjustments0.0%0.5%
Cost of equity6.5%9.1%
Tax rate27.7%28.2%
Debt/Equity ratio
0.010.01
Cost of debt4.0%7.0%
After-tax WACC6.5%9.1%
Selected WACC7.8%

BIS.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 BIS.AX:

cost_of_equity (7.80%) = risk_free_rate (4.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.49) + 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.