BNED
Barnes & Noble Education Inc
Price:  
11.69 
USD
Volume:  
1,175,343.00
United States | Specialty Retail
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

BNED WACC - Weighted Average Cost of Capital

The WACC of Barnes & Noble Education Inc (BNED) is 8.0%.

The Cost of Equity of Barnes & Noble Education Inc (BNED) is 8.45%.
The Cost of Debt of Barnes & Noble Education Inc (BNED) is 8.40%.

Range Selected
Cost of equity 6.40% - 10.50% 8.45%
Tax rate 8.30% - 17.40% 12.85%
Cost of debt 7.70% - 9.10% 8.40%
WACC 6.6% - 9.4% 8.0%
WACC

BNED WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.55 1
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.40% 10.50%
Tax rate 8.30% 17.40%
Debt/Equity ratio 0.55 0.55
Cost of debt 7.70% 9.10%
After-tax WACC 6.6% 9.4%
Selected WACC 8.0%

BNED'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 BNED:

cost_of_equity (8.45%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.55) + 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.