BSA.WA WACC - Weighted Average Cost of Capital
The WACC of Bras SA (BSA.WA) is 7.8%.
| Range | Selected | |
| Cost of equity | 8.2% - 11.1% | 9.65% |
| Tax rate | 24.8% - 30.1% | 27.45% |
| Cost of debt | 6.6% - 7.0% | 6.8% |
| WACC | 6.9% - 8.6% | 7.8% |
| Category | Low | High |
| Long-term bond rate | 5.5% | 6.0% |
| Equity market risk premium | 6.3% | 7.3% |
| Adjusted beta | 0.43 | 0.62 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.2% | 11.1% |
| Tax rate | 24.8% | 30.1% |
| Debt/Equity ratio | 0.66 | 0.66 |
| Cost of debt | 6.6% | 7.0% |
| After-tax WACC | 6.9% | 8.6% |
| Selected WACC | 7.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BSA.WA | Bras SA | 0.66 | -0.36 | -0.24 |
| AALLON.HE | Aallon Group Oyj | 0.18 | 0.57 | 0.51 |
| BTG.WA | Blue Tax Group SA | 0.01 | 1.07 | 1.06 |
| CIRC.MI | Circle SpA | 0.01 | 0.61 | 0.61 |
| DGA.WA | DGA SA | 0 | 0.13 | 0.13 |
| ECA.WA | Uhy Eca SA | 0.08 | 0.66 | 0.62 |
| RBGP.L | RBG Holdings PLC | 32.67 | 1.6 | 0.07 |
| SAG.L | Science Group PLC | 0.07 | 0.16 | 0.15 |
| SEC.PA | Soditech SA | 0.46 | 0.06 | 0.04 |
| TRH1V.HE | Trainers' House Oyj | 0.14 | -0.31 | -0.28 |
| Low | High | |
| Unlevered beta | 0.1 | 0.3 |
| Relevered beta | 0.15 | 0.43 |
| Adjusted relevered beta | 0.43 | 0.62 |
BSA.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 BSA.WA:
cost_of_equity (9.65%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.43) + 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.