BTG.WA
Blue Tax Group SA
Price:  
6.15 
PLN
Volume:  
112
Poland | Professional Services

BTG.WA WACC - Weighted Average Cost of Capital

The WACC of Blue Tax Group SA (BTG.WA) is 9.1%.

The Cost of Equity of Blue Tax Group SA (BTG.WA) is 9.15%.
The Cost of Debt of Blue Tax Group SA (BTG.WA) is 6.85%.

RangeSelected
Cost of equity8.2% - 10.1%9.15%
Tax rate19.0% - 19.0%19%
Cost of debt6.7% - 7.0%6.85%
WACC8.1% - 10.1%9.1%
WACC

BTG.WA WACC calculation

CategoryLowHigh
Long-term bond rate5.6%6.1%
Equity market risk premium6.8%7.8%
Adjusted beta0.380.45
Additional risk adjustments0.0%0.5%
Cost of equity8.2%10.1%
Tax rate19.0%19.0%
Debt/Equity ratio
0.010.01
Cost of debt6.7%7.0%
After-tax WACC8.1%10.1%
Selected WACC9.1%

BTG.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 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.