BPC.WA WACC - Weighted Average Cost of Capital
The WACC of Black Pearl SA (BPC.WA) is 9.2%.
| Range | Selected | |
| Cost of equity | 8.1% - 10.6% | 9.35% |
| Tax rate | 19.0% - 19.0% | 19% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.0% - 10.4% | 9.2% |
| Category | Low | High |
| Long-term bond rate | 5.5% | 6.0% |
| Equity market risk premium | 6.3% | 7.3% |
| Adjusted beta | 0.41 | 0.55 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.1% | 10.6% |
| Tax rate | 19.0% | 19.0% |
| Debt/Equity ratio | 0.02 | 0.02 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.0% | 10.4% |
| Selected WACC | 9.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BPC.WA | Black Pearl SA | 0.02 | 0.59 | 0.58 |
| AKKO.BD | AKKO Invest Nyrt | 0.04 | 0.77 | 0.74 |
| ALIDS.PA | Idsud SA | 0.04 | 0.13 | 0.13 |
| ALM.L | Allied Minds PLC | 0.11 | 0.81 | 0.74 |
| BRSD.L | Brandshield Systems PLC | 0.23 | -0.8 | -0.67 |
| EFF.DE | Deutsche Effecten und Wechsel Beteiligungsgesellschaft AG | 0.6 | 0.05 | 0.04 |
| FIC.MI | First Capital SpA | 0.53 | 0.3 | 0.21 |
| HUBVC.IS | Hub Girisim Sermayesi Yatirim Ortakligi AS | 0 | 0.51 | 0.51 |
| STRINV.CO | Strategic Investments A/S | 0.18 | -0.26 | -0.23 |
| VALUE.AS | Value8 NV | 0.18 | 0.12 | 0.11 |
| Low | High | |
| Unlevered beta | 0.12 | 0.33 |
| Relevered beta | 0.12 | 0.33 |
| Adjusted relevered beta | 0.41 | 0.55 |
BPC.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 BPC.WA:
cost_of_equity (9.35%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.41) + 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.