BKL.AX WACC - Weighted Average Cost of Capital
The WACC of Blackmores Ltd (BKL.AX) is 8.3%.
| Range | Selected | |
| Cost of equity | 7.2% - 9.5% | 8.35% |
| Tax rate | 29.2% - 30.2% | 29.7% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 7.1% - 9.4% | 8.3% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.62 | 0.74 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.2% | 9.5% |
| Tax rate | 29.2% | 30.2% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 7.1% | 9.4% |
| Selected WACC | 8.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BKL.AX | Blackmores Ltd | 0.01 | 0.98 | 0.97 |
| 1707.TW | Grape King Bio Ltd | 0.01 | 0.22 | 0.22 |
| 200130.KQ | KolmarBNH Co Ltd | 0.55 | 0.92 | 0.67 |
| 300740.SZ | Yujiahui Co Ltd | 0.32 | 2.03 | 1.65 |
| 300791.SZ | Sirio Pharma Co Ltd | 0.23 | 1.17 | 1.01 |
| 4919.T | Milbon Co Ltd | 0 | 0.28 | 0.27 |
| 4928.T | Noevir Holdings Co Ltd | 0.01 | 0.46 | 0.46 |
| AHY.AX | Asaleo Care Ltd | 0.23 | 0.23 | 0.2 |
| BWX.AX | BWX Ltd | 3.29 | 1.84 | 0.55 |
| SIDO.JK | Industri Jamu dan Farmasi Sido Muncul Tbk PT | 0 | 0.37 | 0.37 |
| Low | High | |
| Unlevered beta | 0.42 | 0.6 |
| Relevered beta | 0.43 | 0.61 |
| Adjusted relevered beta | 0.62 | 0.74 |
BKL.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 BKL.AX:
cost_of_equity (8.35%) = risk_free_rate (4.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.62) + 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.