BPM.L WACC - Weighted Average Cost of Capital
The WACC of B.P. Marsh & Partners PLC (BPM.L) is 8.6%.
| Range | Selected | |
| Cost of equity | 7.5% - 9.8% | 8.65% |
| Tax rate | 2.3% - 5.4% | 3.85% |
| Cost of debt | 4.6% - 4.8% | 4.7% |
| WACC | 7.5% - 9.8% | 8.6% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.59 | 0.69 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.5% | 9.8% |
| Tax rate | 2.3% | 5.4% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 4.6% | 4.8% |
| After-tax WACC | 7.5% | 9.8% |
| Selected WACC | 8.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BPM.L | B.P. Marsh & Partners PLC | 0 | 0.41 | 0.41 |
| ALPN.SW | Alpine Select AG | 0.01 | 0.36 | 0.36 |
| BFE.MI | Banca Finnat Euramerica SpA | 7.43 | 0.58 | 0.07 |
| HDFGS.IS | Hedef Girisim Sermayesi Yatirim Ortakligi AS | 0 | 0.96 | 0.96 |
| HPBK.DE | Heliad Equity Partners GmbH & Co KGaA | 0.24 | 0.88 | 0.71 |
| MERC.L | Mercia Asset Management PLC | 0.01 | 1.34 | 1.34 |
| REC.L | Record PLC | 0 | 0.33 | 0.33 |
| SKH.WA | Skarbiec Holding SA | 0.01 | 0.31 | 0.31 |
| SVE.DE | Shareholder Value Beteiligungen AG | 0.91 | 0.45 | 0.24 |
| TITAN.HE | Titanium Oyj | 0.02 | 0.8 | 0.79 |
| Low | High | |
| Unlevered beta | 0.35 | 0.53 |
| Relevered beta | 0.39 | 0.54 |
| Adjusted relevered beta | 0.59 | 0.69 |
BPM.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 BPM.L:
cost_of_equity (8.65%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.59) + 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.