BMC.WA WACC - Weighted Average Cost of Capital
The WACC of Bumech SA (BMC.WA) is 8.8%.
| Range | Selected | |
| Cost of equity | 10.5% - 13.6% | 12.05% |
| Tax rate | 19.0% - 19.0% | 19% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 7.4% - 10.2% | 8.8% |
| Category | Low | High |
| Long-term bond rate | 5.5% | 6.0% |
| Equity market risk premium | 6.3% | 7.3% |
| Adjusted beta | 0.79 | 0.97 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.5% | 13.6% |
| Tax rate | 19.0% | 19.0% |
| Debt/Equity ratio | 0.75 | 0.75 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 7.4% | 10.2% |
| Selected WACC | 8.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BMC.WA | Bumech SA | 0.75 | 0.76 | 0.47 |
| CFS.WA | Centrum Finansowe SA | 0.27 | -0.09 | -0.07 |
| EAAS.L | Eenergy Group PLC | 0.41 | 1.16 | 0.87 |
| FM.MI | Fiera Milano SpA | 0.85 | 1.16 | 0.69 |
| GYG.L | GYG PLC | 1.1 | 1.78 | 0.94 |
| INSE.L | Inspired Energy PLC | 0.61 | 0.99 | 0.66 |
| JWW.WA | JWW Invest SA | 0.11 | 0.39 | 0.36 |
| NOVI.AS | Novisource NV | 0.04 | 0.57 | 0.55 |
| SUL.WA | Summa Linguae Technologies SA | 0.08 | 0.29 | 0.28 |
| VIN.WA | Gielda Praw Majatkowych Vindexus SA | 0.4 | 0.26 | 0.2 |
| Low | High | |
| Unlevered beta | 0.42 | 0.59 |
| Relevered beta | 0.69 | 0.96 |
| Adjusted relevered beta | 0.79 | 0.97 |
BMC.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 BMC.WA:
cost_of_equity (12.05%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.79) + 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.