BXC
Bluelinx Holdings Inc
Price:  
68.22 
USD
Volume:  
138,535.00
United States | Trading Companies & Distributors
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

BXC WACC - Weighted Average Cost of Capital

The WACC of Bluelinx Holdings Inc (BXC) is 8.3%.

The Cost of Equity of Bluelinx Holdings Inc (BXC) is 10.70%.
The Cost of Debt of Bluelinx Holdings Inc (BXC) is 8.15%.

Range Selected
Cost of equity 8.50% - 12.90% 10.70%
Tax rate 24.80% - 24.90% 24.85%
Cost of debt 7.20% - 9.10% 8.15%
WACC 6.9% - 9.8% 8.3%
WACC

BXC WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.01 1.43
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.50% 12.90%
Tax rate 24.80% 24.90%
Debt/Equity ratio 1.07 1.07
Cost of debt 7.20% 9.10%
After-tax WACC 6.9% 9.8%
Selected WACC 8.3%

BXC'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 BXC:

cost_of_equity (10.70%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.01) + 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.