BSA.WA WACC - Weighted Average Cost of Capital

The WACC of Bras SA (BSA.WA) is 9.1%.

The Cost of Equity of Bras SA (BSA.WA) is 9.40%.

The Cost of Debt of Bras SA (BSA.WA) is 9.35%.

	Range	Selected
Cost of equity	8.20% - 10.60%	9.40%
Tax rate	5.80% - 18.50%	12.15%
Cost of debt	8.00% - 10.70%	9.35%
WACC	8.0% - 10.1%	9.1%

WACC

BSA.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.43	0.56

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.20%	10.60%

Tax rate	5.80%	18.50%
Debt/Equity ratio	0.34	0.34
Cost of debt	8.00%	10.70%

After-tax WACC	8.0%	10.1%


Selected WACC	9.1%

BSA.WA'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 BSA.WA:

cost_of_equity (9.40%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.43) + 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.