BLS.SW WACC - Weighted Average Cost of Capital

The WACC of Blackstone Resources AG (BLS.SW) is 7.8%.

The Cost of Equity of Blackstone Resources AG (BLS.SW) is 13.25%.

The Cost of Debt of Blackstone Resources AG (BLS.SW) is 5.50%.

	Range	Selected
Cost of equity	9.50% - 17.00%	13.25%
Tax rate	0.60% - 1.00%	0.80%
Cost of debt	4.00% - 7.00%	5.50%
WACC	5.6% - 10.0%	7.8%

WACC

BLS.SW WACC calculation

Category	Low	High

Long-term bond rate	1.0%	1.5%
Equity market risk premium	5.1%	6.1%
Adjusted beta	1.67	2.47

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.50%	17.00%

Tax rate	0.60%	1.00%
Debt/Equity ratio	2.32	2.32
Cost of debt	4.00%	7.00%

After-tax WACC	5.6%	10.0%


Selected WACC	7.8%

BLS.SW'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 BLS.SW:

cost_of_equity (13.25%) = risk_free_rate (1.25%) + equity_risk_premium (5.60%) * adjusted_beta (1.67) + 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.