BLU.WA WACC - Weighted Average Cost of Capital

The WACC of Blumerang Investors SA (BLU.WA) is 11.6%.

The Cost of Equity of Blumerang Investors SA (BLU.WA) is 11.65%.

The Cost of Debt of Blumerang Investors SA (BLU.WA) is 5.00%.

	Range	Selected
Cost of equity	10.40% - 12.90%	11.65%
Tax rate	12.80% - 17.40%	15.10%
Cost of debt	5.00% - 5.00%	5.00%
WACC	10.4% - 12.9%	11.6%

WACC

BLU.WA WACC calculation

Category	Low	High

Long-term bond rate	7.2%	7.7%
Equity market risk premium	5.6%	6.6%
Adjusted beta	0.57	0.7

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.40%	12.90%

Tax rate	12.80%	17.40%
Debt/Equity ratio	0	0
Cost of debt	5.00%	5.00%

After-tax WACC	10.4%	12.9%


Selected WACC	11.6%

BLU.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 BLU.WA:

cost_of_equity (11.65%) = risk_free_rate (7.45%) + equity_risk_premium (6.10%) * adjusted_beta (0.57) + 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.