The WACC of Blue Tax Group SA (BTG.WA) is 9.1%.
Range | Selected | |
Cost of equity | 8.2% - 10.1% | 9.15% |
Tax rate | 19.0% - 19.0% | 19% |
Cost of debt | 6.7% - 7.0% | 6.85% |
WACC | 8.1% - 10.1% | 9.1% |
Category | Low | High |
Long-term bond rate | 5.6% | 6.1% |
Equity market risk premium | 6.8% | 7.8% |
Adjusted beta | 0.38 | 0.45 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 8.2% | 10.1% |
Tax rate | 19.0% | 19.0% |
Debt/Equity ratio | 0.01 | 0.01 |
Cost of debt | 6.7% | 7.0% |
After-tax WACC | 8.1% | 10.1% |
Selected WACC | 9.1% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
BTG.WA | Blue Tax Group SA | 0.01 | 1.07 | 1.06 |
AALLON.HE | Aallon Group Oyj | 0.18 | 0.57 | 0.5 |
AQSG.L | Aquila Services Group PLC | 0.04 | 0.16 | 0.16 |
AUK.L | Aukett Swanke Group PLC | 0.9 | 0.44 | 0.25 |
CIRC.MI | Circle SpA | 0.01 | 0.61 | 0.61 |
CTG.L | Christie Group plc | 0.31 | 0.91 | 0.73 |
DGA.WA | DGA SA | 0 | 0.13 | 0.13 |
ECA.WA | Uhy Eca SA | 0.08 | 0.66 | 0.62 |
HIFA B.ST | Hifab Group AB | 0.07 | 0.53 | 0.5 |
RO.ST | Rolling Optics Holding AB | 0.92 | 0.33 | 0.19 |
Low | High | |
Unlevered beta | 0.4 | 0.54 |
Relevered beta | 0.07 | 0.18 |
Adjusted relevered beta | 0.38 | 0.45 |
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 BTG.WA:
cost_of_equity (9.15%) = risk_free_rate (5.85%) + equity_risk_premium (7.30%) * adjusted_beta (0.38) + 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.