BRAN.TA WACC - Weighted Average Cost of Capital

The WACC of Baran Group Ltd (BRAN.TA) is 7.2%.

The Cost of Equity of Baran Group Ltd (BRAN.TA) is 9.25%.

The Cost of Debt of Baran Group Ltd (BRAN.TA) is 4.95%.

	Range	Selected
Cost of equity	8.00% - 10.50%	9.25%
Tax rate	22.20% - 32.40%	27.30%
Cost of debt	4.00% - 5.90%	4.95%
WACC	6.2% - 8.1%	7.2%

WACC

BRAN.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.52	0.66

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.00%	10.50%

Tax rate	22.20%	32.40%
Debt/Equity ratio	0.57	0.57
Cost of debt	4.00%	5.90%

After-tax WACC	6.2%	8.1%


Selected WACC	7.2%

BRAN.TA'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 BRAN.TA:

cost_of_equity (9.25%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.52) + 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.