BLO.WA
Bloober Team SA
Price:  
28.9 
PLN
Volume:  
9,116
Poland | Entertainment

BLO.WA WACC - Weighted Average Cost of Capital

The WACC of Bloober Team SA (BLO.WA) is 9.7%.

The Cost of Equity of Bloober Team SA (BLO.WA) is 9.75%.
The Cost of Debt of Bloober Team SA (BLO.WA) is 10.85%.

RangeSelected
Cost of equity8.4% - 11.1%9.75%
Tax rate12.3% - 18.0%15.15%
Cost of debt6.7% - 15.0%10.85%
WACC8.3% - 11.1%9.7%
WACC

BLO.WA WACC calculation

CategoryLowHigh
Long-term bond rate5.5%6.0%
Equity market risk premium6.3%7.3%
Adjusted beta0.450.62
Additional risk adjustments0.0%0.5%
Cost of equity8.4%11.1%
Tax rate12.3%18.0%
Debt/Equity ratio
0.030.03
Cost of debt6.7%15.0%
After-tax WACC8.3%11.1%
Selected WACC9.7%

BLO.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 BLO.WA:

cost_of_equity (9.75%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.45) + 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.