BMXC WACC - Weighted Average Cost of Capital
The WACC of Bemax Inc (BMXC) is 4.2%.
| Range | Selected | |
| Cost of equity | 70605.7% - 283316.3% | 176961% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 3.9% - 4.4% | 4.2% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 15348.21 | 50591.33 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 70605.7% | 283316.3% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 368120 | 368120 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 3.9% | 4.4% |
| Selected WACC | 4.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BMXC | Bemax Inc | 368120 | -1.33 | 0 |
| CORE | Core-Mark Holding Company Inc | 0.19 | 0.37 | 0.32 |
| DIT | AMCON Distributing Co | 1.9 | 0.23 | 0.1 |
| GIBX | GIB Capital Group Inc | 98523.34 | -0.38 | 0 |
| LKQ | LKQ Corp | 0.4 | 0.33 | 0.25 |
| POOL | Pool Corp | 0.08 | 0.43 | 0.4 |
| UFMG | Universal Mfg Co | 1.2 | 1.34 | 0.71 |
| UNS.TO | Uni-Select Inc | 0.22 | 0.74 | 0.64 |
| LANAC.AT | LanaKam SA | 0.38 | 0.66 | 0.52 |
| LDSG.L | Leeds Group PLC | 3.66 | 0.25 | 0.07 |
| Low | High | |
| Unlevered beta | 0.19 | 0.36 |
| Relevered beta | 22907.28 | 75508.96 |
| Adjusted relevered beta | 15348.21 | 50591.33 |
BMXC'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 BMXC:
cost_of_equity (176,961.00%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (15348.21) + 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.