BSGR.AS WACC - Weighted Average Cost of Capital

The WACC of B&S Group SA (BSGR.AS) is 6.3%.

The Cost of Equity of B&S Group SA (BSGR.AS) is 8.15%.

The Cost of Debt of B&S Group SA (BSGR.AS) is 5.50%.

	Range	Selected
Cost of equity	6.40% - 9.90%	8.15%
Tax rate	24.20% - 24.30%	24.25%
Cost of debt	4.00% - 7.00%	5.50%
WACC	4.8% - 7.8%	6.3%

WACC

BSGR.AS WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.74	1.03

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.40%	9.90%

Tax rate	24.20%	24.30%
Debt/Equity ratio	0.85	0.85
Cost of debt	4.00%	7.00%

After-tax WACC	4.8%	7.8%


Selected WACC	6.3%

BSGR.AS'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 BSGR.AS:

cost_of_equity (8.15%) = risk_free_rate (2.85%) + equity_risk_premium (5.60%) * adjusted_beta (0.74) + 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.