BTX.WA WACC - Weighted Average Cost of Capital

The WACC of Forbuild SA (BTX.WA) is 8.9%.

The Cost of Equity of Forbuild SA (BTX.WA) is 9.05%.

The Cost of Debt of Forbuild SA (BTX.WA) is 5.30%.

	Range	Selected
Cost of equity	8.10% - 10.00%	9.05%
Tax rate	21.10% - 21.80%	21.45%
Cost of debt	4.70% - 5.90%	5.30%
WACC	7.9% - 9.8%	8.9%

WACC

BTX.WA WACC calculation

Category	Low	High

Long-term bond rate	5.1%	5.6%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.47	0.53

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.10%	10.00%

Tax rate	21.10%	21.80%
Debt/Equity ratio	0.05	0.05
Cost of debt	4.70%	5.90%

After-tax WACC	7.9%	9.8%


Selected WACC	8.9%

BTX.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 BTX.WA:

cost_of_equity (9.05%) = risk_free_rate (5.35%) + equity_risk_premium (6.80%) * adjusted_beta (0.47) + 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.