BXLC WACC - Weighted Average Cost of Capital
The WACC of Bexil Corp (BXLC) is 7.2%.
| Range | Selected | |
| Cost of equity | 8.5% - 11.9% | 10.2% |
| Tax rate | 17.7% - 18.3% | 18% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.3% - 8.0% | 7.2% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 1.02 | 1.26 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.5% | 11.9% |
| Tax rate | 17.7% | 18.3% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.3% | 8.0% |
| Selected WACC | 7.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BXLC | Bexil Corp | 0.01 | 0.23 | 0.23 |
| ALRS | Alerus Financial Corp | 0.18 | 1.08 | 0.94 |
| BCF.V | Builders Capital Mortgage Corp | 0.17 | 0.27 | 0.23 |
| CFE.CN | Cartier Iron Corp | 0.03 | 1.71 | 1.66 |
| EQH | Equitable Holdings Inc | 1.15 | 1.14 | 0.59 |
| IOU.V | Iou Financial Inc | 0.25 | 0.64 | 0.53 |
| MLC.NE | Mount Logan Capital Inc | 2.04 | 0.68 | 0.26 |
| MRLN | Marlin Business Services Corp | 2.69 | 1 | 0.31 |
| RNP.V | Royalty North Partners Ltd | 0.16 | 1.8 | 1.59 |
| SFI.V | Solution Financial Inc | 0.34 | 0.94 | 0.73 |
| VOYA | Voya Financial Inc | 0.37 | 1.05 | 0.81 |
| Low | High | |
| Unlevered beta | 0.53 | 0.73 |
| Relevered beta | 1.03 | 1.39 |
| Adjusted relevered beta | 1.02 | 1.26 |
BXLC'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 BXLC:
cost_of_equity (10.20%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.02) + 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.