BMX.WA WACC - Weighted Average Cost of Capital

The WACC of BioMaxima SA (BMX.WA) is 10.2%.

The Cost of Equity of BioMaxima SA (BMX.WA) is 10.75%.

The Cost of Debt of BioMaxima SA (BMX.WA) is 14.75%.

	Range	Selected
Cost of equity	9.10% - 12.40%	10.75%
Tax rate	19.70% - 48.80%	34.25%
Cost of debt	4.00% - 25.50%	14.75%
WACC	7.9% - 12.6%	10.2%

WACC

BMX.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.56	0.81

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.10%	12.40%

Tax rate	19.70%	48.80%
Debt/Equity ratio	0.25	0.25
Cost of debt	4.00%	25.50%

After-tax WACC	7.9%	12.6%


Selected WACC	10.2%

BMX.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 BMX.WA:

cost_of_equity (10.75%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.56) + 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.