BV
Brightview Holdings Inc
Price:  
14.36 
USD
Volume:  
435,843.00
United States | Commercial Services & Supplies
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BV WACC - Weighted Average Cost of Capital

The WACC of Brightview Holdings Inc (BV) is 6.9%.

The Cost of Equity of Brightview Holdings Inc (BV) is 8.00%.
The Cost of Debt of Brightview Holdings Inc (BV) is 7.15%.

Range Selected
Cost of equity 7.00% - 9.00% 8.00%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 5.20% - 9.10% 7.15%
WACC 5.7% - 8.1% 6.9%
WACC

BV WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.67 0.74
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.00% 9.00%
Tax rate 26.20% 27.00%
Debt/Equity ratio 0.63 0.63
Cost of debt 5.20% 9.10%
After-tax WACC 5.7% 8.1%
Selected WACC 6.9%

BV'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 BV:

cost_of_equity (8.00%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.67) + 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.