BUI.PA
Barbara Bui SA
Price:  
3.80 
EUR
Volume:  
50.00
France | Textiles, Apparel & Luxury Goods
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BUI.PA WACC - Weighted Average Cost of Capital

The WACC of Barbara Bui SA (BUI.PA) is 5.3%.

The Cost of Equity of Barbara Bui SA (BUI.PA) is 5.95%.
The Cost of Debt of Barbara Bui SA (BUI.PA) is 5.00%.

Range Selected
Cost of equity 5.10% - 6.80% 5.95%
Tax rate 3.40% - 5.00% 4.20%
Cost of debt 5.00% - 5.00% 5.00%
WACC 4.9% - 5.6% 5.3%
WACC

BUI.PA WACC calculation

Category Low High
Long-term bond rate 3.0% 3.5%
Equity market risk premium 5.8% 6.8%
Adjusted beta 0.36 0.41
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.10% 6.80%
Tax rate 3.40% 5.00%
Debt/Equity ratio 1.36 1.36
Cost of debt 5.00% 5.00%
After-tax WACC 4.9% 5.6%
Selected WACC 5.3%

BUI.PA'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 BUI.PA:

cost_of_equity (5.95%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.36) + 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.