BRAN.TA WACC - Weighted Average Cost of Capital

The WACC of Baran Group Ltd (BRAN.TA) is 7.9%.

The Cost of Equity of Baran Group Ltd (BRAN.TA) is 9.55%.

The Cost of Debt of Baran Group Ltd (BRAN.TA) is 5.70%.

	Range	Selected
Cost of equity	8.20% - 10.90%	9.55%
Tax rate	13.50% - 21.80%	17.65%
Cost of debt	4.80% - 6.60%	5.70%
WACC	6.9% - 8.9%	7.9%

WACC

BRAN.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.56	0.71

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.20%	10.90%

Tax rate	13.50%	21.80%
Debt/Equity ratio	0.51	0.51
Cost of debt	4.80%	6.60%

After-tax WACC	6.9%	8.9%


Selected WACC	7.9%

BRAN.TA'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 BRAN.TA:

cost_of_equity (9.55%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.56) + 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.