VTOL WACC - Weighted Average Cost of Capital
The WACC of Bristow Group Inc (VTOL) is 7.9%.
| Range | Selected | |
| Cost of equity | 8.9% - 11.7% | 10.3% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 6.1% - 6.2% | 6.15% |
| WACC | 7.1% - 8.8% | 7.9% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 1.1 | 1.22 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.9% | 11.7% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 0.7 | 0.7 |
| Cost of debt | 6.1% | 6.2% |
| After-tax WACC | 7.1% | 8.8% |
| Selected WACC | 7.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| VTOL | Bristow Group Inc | 0.7 | 1.08 | 0.71 |
| ASPN | Aspen Aerogels Inc | 0.32 | 1.87 | 1.52 |
| BOOM | DMC Global Inc | 0.41 | 1.07 | 0.82 |
| FI | Fiserv Inc | 0.26 | 0.39 | 0.33 |
| HMLP | Hoegh LNG Partners LP | 1.34 | 1.38 | 0.7 |
| PSI.TO | Pason Systems Inc | 0.02 | 1.1 | 1.09 |
| SMHI | SEACOR Marine Holdings Inc | 2.28 | 2 | 0.75 |
| SOI | Solaris Oilfield Infrastructure Inc | 0.02 | 0.78 | 0.77 |
| TCW.TO | Trican Well Service Ltd | 0.02 | 0.99 | 0.98 |
| TVK.TO | TerraVest Industries Inc | 0.08 | 2.04 | 1.92 |
| Low | High | |
| Unlevered beta | 0.76 | 0.88 |
| Relevered beta | 1.15 | 1.33 |
| Adjusted relevered beta | 1.1 | 1.22 |
VTOL'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 VTOL:
cost_of_equity (10.30%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.1) + 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.