BML.WA WACC - Weighted Average Cost of Capital

The WACC of Biomed Lublin Wytwornia Surowic i Szczepionek SA (BML.WA) is 10.5%.

The Cost of Equity of Biomed Lublin Wytwornia Surowic i Szczepionek SA (BML.WA) is 10.75%.

The Cost of Debt of Biomed Lublin Wytwornia Surowic i Szczepionek SA (BML.WA) is 6.80%.

	Range	Selected
Cost of equity	9.60% - 11.90%	10.75%
Tax rate	22.30% - 27.30%	24.80%
Cost of debt	6.40% - 7.20%	6.80%
WACC	9.4% - 11.7%	10.5%

WACC

BML.WA WACC calculation

Category	Low	High

Long-term bond rate	5.6%	6.1%
Equity market risk premium	6.8%	7.8%
Adjusted beta	0.58	0.69

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.60%	11.90%

Tax rate	22.30%	27.30%
Debt/Equity ratio	0.04	0.04
Cost of debt	6.40%	7.20%

After-tax WACC	9.4%	11.7%


Selected WACC	10.5%

BML.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 BML.WA:

cost_of_equity (10.75%) = risk_free_rate (5.85%) + equity_risk_premium (7.30%) * adjusted_beta (0.58) + 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.