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Bon Natural Life Limited Class A Ordinary Shares (BON) — WACC Analysis

WACC Breakdown

Bon Natural Life Limited Class A Ordinary Shares (BON) has a weighted average cost of capital (WACC) of 5.2%. The cost of equity is 7.4%, derived from a beta of 0.26 and a risk-free rate of 5.2%. The after-tax cost of debt is 3.3%. The capital structure is 45.4% equity and 54.6% debt.

Interpretation

A WACC of 5.2% suggests that the market views Bon Natural Life Limited Class A Ordinary Shares as relatively low-risk, with a lower cost of financing.

Investors can compare BON's WACC of 5.2% against industry peers to gauge its relative financing costs. A beta of 0.26 reflects the stock's volatility relative to the broader market.

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VALUATION

BON WACC: 5.15% for Bon Natural Life Limited Class A Ordinary Shares

Current inputs imply a 7.38% cost of equity and a 3.30% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Bon Natural Life Limited Class A Ordinary Shares Common Stock (BON) WACC Results
Weighted Average Cost of Capital
5.15%
Cost of Equity
7.38%
Risk-Free Rate5.24%
Beta0.26
Market Risk Premium4.23%
Cost of Debt
3.30%
Pre-Tax Cost of Debt3.30%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 45.39%($9.22M)
Debt: 54.61%($11.09M)
Equity Component
3.35%
45.39% × 7.38%
Debt Component
1.80%
54.61% × 3.30%

Bon Natural Life Limited Class A Ordinary Shares (BON) WACC in context

Bon Natural Life Limited Class A Ordinary Shares (BON) currently screens with an estimated WACC of 5.15%. That blends a 7.38% cost of equity, a 3.30% pre-tax cost of debt, and a 45.39% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively low discount rate, which usually supports higher DCF values.

What BON WACC implies

A 5.15% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates BON

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.26 and equity accounts for 45.39% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.