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%.

	Range	Selected
Cost of equity	8.20% - 10.10%	9.15%
Tax rate	19.00% - 19.00%	19.00%
Cost of debt	6.70% - 7.00%	6.85%
WACC	8.1% - 10.1%	9.1%

WACC

BTG.WA WACC calculation

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	8.20%	10.10%

Tax rate	19.00%	19.00%
Debt/Equity ratio	0.01	0.01
Cost of debt	6.70%	7.00%

After-tax WACC	8.1%	10.1%


Selected WACC	9.1%

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.