BMY.L
Bloomsbury Publishing PLC
Price:  
617.00 
GBP
Volume:  
471,978.00
United Kingdom | Media
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BMY.L WACC - Weighted Average Cost of Capital

The WACC of Bloomsbury Publishing PLC (BMY.L) is 7.2%.

The Cost of Equity of Bloomsbury Publishing PLC (BMY.L) is 7.25%.
The Cost of Debt of Bloomsbury Publishing PLC (BMY.L) is 4.30%.

Range Selected
Cost of equity 6.30% - 8.20% 7.25%
Tax rate 20.90% - 21.50% 21.20%
Cost of debt 4.00% - 4.60% 4.30%
WACC 6.3% - 8.2% 7.2%
WACC

BMY.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.39 0.47
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.30% 8.20%
Tax rate 20.90% 21.50%
Debt/Equity ratio 0.02 0.02
Cost of debt 4.00% 4.60%
After-tax WACC 6.3% 8.2%
Selected WACC 7.2%

BMY.L'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 BMY.L:

cost_of_equity (7.25%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.39) + 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.