BMH.AX
Baumart Holdings Ltd
Price:  
0.04 
AUD
Volume:  
24,900.00
Australia | Trading Companies & Distributors
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BMH.AX WACC - Weighted Average Cost of Capital

The WACC of Baumart Holdings Ltd (BMH.AX) is 6.5%.

The Cost of Equity of Baumart Holdings Ltd (BMH.AX) is 6.55%.
The Cost of Debt of Baumart Holdings Ltd (BMH.AX) is 4.55%.

Range Selected
Cost of equity 5.70% - 7.40% 6.55%
Tax rate 30.00% - 30.00% 30.00%
Cost of debt 4.00% - 5.10% 4.55%
WACC 5.7% - 7.4% 6.5%
WACC

BMH.AX WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.33 0.38
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.70% 7.40%
Tax rate 30.00% 30.00%
Debt/Equity ratio 0 0
Cost of debt 4.00% 5.10%
After-tax WACC 5.7% 7.4%
Selected WACC 6.5%

BMH.AX'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 BMH.AX:

cost_of_equity (6.55%) = risk_free_rate (4.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.33) + 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.