BXG
Bluegreen Vacations Corp
Price:  
9.32 
USD
Volume:  
33,560
United States | Hotels, Restaurants & Leisure

BXG WACC - Weighted Average Cost of Capital

The WACC of Bluegreen Vacations Corp (BXG) is 6.4%.

The Cost of Equity of Bluegreen Vacations Corp (BXG) is 8.6%.
The Cost of Debt of Bluegreen Vacations Corp (BXG) is 5.2%.

RangeSelected
Cost of equity6.7% - 10.5%8.6%
Tax rate22.1% - 26.6%24.35%
Cost of debt4.9% - 5.5%5.2%
WACC5.3% - 7.4%6.4%
WACC

BXG WACC calculation

CategoryLowHigh
Long-term bond rate3.2%3.7%
Equity market risk premium4.2%5.2%
Adjusted beta0.841.21
Additional risk adjustments0.0%0.5%
Cost of equity6.7%10.5%
Tax rate22.1%26.6%
Debt/Equity ratio
0.90.9
Cost of debt4.9%5.5%
After-tax WACC5.3%7.4%
Selected WACC6.4%

BXG'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 BXG:

cost_of_equity (8.60%) = risk_free_rate (3.45%) + equity_risk_premium (4.70%) * adjusted_beta (0.84) + 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.