BL
Blackline Inc
Price:  
56.62 
USD
Volume:  
794,354.00
United States | Software
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Blackline WACC - Weighted Average Cost of Capital

The WACC of Blackline Inc (BL) is 8.4%.

The Cost of Equity of Blackline Inc (BL) is 9.45%.
The Cost of Debt of Blackline Inc (BL) is 4.45%.

Range Selected
Cost of equity 7.90% - 11.00% 9.45%
Tax rate 2.20% - 12.80% 7.50%
Cost of debt 4.00% - 4.90% 4.45%
WACC 7.1% - 9.6% 8.4%
WACC

Blackline WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.88 1.09
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.90% 11.00%
Tax rate 2.20% 12.80%
Debt/Equity ratio 0.25 0.25
Cost of debt 4.00% 4.90%
After-tax WACC 7.1% 9.6%
Selected WACC 8.4%

Blackline'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 Blackline:

cost_of_equity (9.45%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.88) + 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.