BKT.MC WACC - Weighted Average Cost of Capital
The WACC of Bankinter SA (BKT.MC) is 6.6%.
| Range | Selected | |
| Cost of equity | 12.6% - 21.4% | 17% |
| Tax rate | 27.6% - 29.1% | 28.35% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.6% - 7.6% | 6.6% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 7.4% | 8.4% |
| Adjusted beta | 1.28 | 2.06 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 12.6% | 21.4% |
| Tax rate | 27.6% | 29.1% |
| Debt/Equity ratio | 3.46 | 3.46 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.6% | 7.6% |
| Selected WACC | 6.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BKT.MC | Bankinter SA | 3.46 | 1.08 | 0.31 |
| BAMI.MI | Banco BPM SpA | 2.05 | 1.18 | 0.48 |
| BPE.MI | Bper Banca SpA | 2.26 | 1.47 | 0.56 |
| ING.WA | ING Bank Slaski SA | 0.07 | 1.07 | 1.02 |
| JYSK.CO | Jyske Bank A/S | 11.12 | 0.35 | 0.04 |
| KOMB.PR | Komercni Banka as | 0.16 | 1.37 | 1.23 |
| LUKN.SW | Luzerner Kantonalbank AG | 4.67 | 0.32 | 0.07 |
| PEO.WA | Bank Polska Kasa Opieki SA | 0.45 | 1.57 | 1.19 |
| SPL.WA | Santander Bank Polska SA | 0.31 | 1.23 | 1.01 |
| TCS.L | TCS Group Holding PLC | 0.17 | -0.42 | -0.38 |
| Low | High | |
| Unlevered beta | 0.41 | 0.74 |
| Relevered beta | 1.42 | 2.58 |
| Adjusted relevered beta | 1.28 | 2.06 |
BKT.MC'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 BKT.MC:
cost_of_equity (17.00%) = risk_free_rate (3.35%) + equity_risk_premium (7.90%) * adjusted_beta (1.28) + 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.