As of today (2026-06-27), Bendigo and Adelaide Bank's weighted average cost of capital is 4.87%%. Bendigo and Adelaide Bank's ROIC % is 0.00% (calculated using TTM income statement data).
Bendigo and Adelaide Bank earns returns that do not match up to its cost of capital. It will destroy value as it grows.
For a comprehensive WACC calculation, please access the WACC Calculator.
Bendigo and Adelaide Bank (ASX:BEN) WACC % Explanation
Because it costs money to raise capital. A firm that generates higher ROIC % than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Bendigo and Adelaide Bank's weighted average cost of capital is 4.87%%. Bendigo and Adelaide Bank's ROIC % is 0.00% (calculated using TTM income statement data).
Bendigo and Adelaide Bank earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
1. GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding latest one-year semi-annual average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together.
For companies that report quarterly, GuruFocus combines all of the most recent year's quarterly debt data from the beginning of the year to the year-end and calculates the average.
For companies that report semi-annually, GuruFocus combines all of the most recent year's semi-annual debt data from the start of the year to the year-end and calculates the average.
For companies that report annually, GuruFocus combines the beginning and ending annual debt data from the most recent year and then calculates the average.
2. The WACC formula discussed above does not include Preferred Stock. Please adjust if preferred stock is considered.
3. (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
4. GuruFocus uses the latest TTM Interest Expense divided by the latest one-year semi-annual average debt to get the simplified cost of debt.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Banks - Regional subindustry, Bendigo and Adelaide Bank's WACC %, along with its competitors' market caps and WACC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Bendigo and Adelaide Bank WACC % vs Banks Industry
For the Banks industry and Financial Services sector, Bendigo and Adelaide Bank's WACC % distribution charts can be found below:
* The bar in red indicates where Bendigo and Adelaide Bank's WACC % falls into.
The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. The WACC is commonly referred to as the firm's cost of capital. Generally speaking, a company's assets are financed by debt and equity. WACC is the average of the costs of these sources of financing, each of which is weighted by its respective use in the given situation. By taking a weighted average, we can see how much interest the company has to pay for every dollar it finances.
WACC
=
E
/
(E + D)
*
Cost of Equity
+
D
/
(E + D)
*
Cost of Debt
*
(1 - Tax Rate)
1. Weights:
Generally speaking, a company's assets are financed by debt and equity. We need to calculate the weight of equity and the weight of debt.
The market value of equity (E) is also called "Market Cap". As of today, Bendigo and Adelaide Bank's market capitalization (E) is A$5898.047 Mil.
The market value of debt is typically difficult to calculate, therefore, GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding the latest one-year semi-annual average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Dec. 2025, Bendigo and Adelaide Bank's latest one-year semi-annual average Book Value of Debt (D) is A$10816.8333 Mil.
a) weight of equity = E / (E + D) = 5898.047 / (5898.047 + 10816.8333) = 0.3529
b) weight of debt = D / (E + D) = 10816.8333 / (5898.047 + 10816.8333) = 0.6471
2. Cost of Equity:
GuruFocus uses Capital Asset Pricing Model (CAPM) to calculate the required rate of return. The formula is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
a) GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate. It is updated daily. The current risk-free rate is 4.99%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default.
b) Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. Bendigo and Adelaide Bank's beta is 1.4696.
c) (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
Cost of Equity = 4.99% + 1.4696 * 6% = 13.8076%
3. Cost of Debt:
GuruFocus uses latest TTM Interest Expense divided by the latest one-year semi-annual average debt to get the simplified cost of debt.
As of Dec. 2025, Bendigo and Adelaide Bank's interest expense (positive number) was A$3109.3 Mil. Its total Book Value of Debt (D) is A$10816.8333 Mil.
Cost of Debt = 3109.3 / 10816.8333 = 28.745%.
4. Multiply by one minus TTM Tax Rate:
GuruFocus uses the most recent TTM Tax Expense divided by the most recent TTM Pre-Tax Income to calculate the tax rate. The calculated TTM tax rate is limited to between 0% and 100%. If the calculated tax rate is higher than 100%, it is set to 100%. If the calculated tax rate is less than 0%, it is set to 0%.
The latest calculated TTM Tax Rate = 216.2 / 132.9 = 162.68%, which is higher than 100%. Therefore it's set to 100%.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Bendigo and Adelaide Bank (ASX:BEN) has a WACC % of 4.87% as of Jun. 27, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Bendigo and Adelaide Bank and its competitors. This is 55% below median its historical median of 10.91. Over the past decade, Bendigo and Adelaide Bank's WACC % has ranged from 4.55 to 15.31. According to the industry distribution chart, Bendigo and Adelaide Bank ranks #158 out of 1543 companies in the Banks industry, placing it in the top 10.2%.
Is Bendigo and Adelaide Bank's WACC % too high?
Bendigo and Adelaide Bank's current WACC % of 4.87% is 55% below median its 10-year median of 10.91. Over the past 10 years, this metric has ranged from a low of 4.55 to a high of 15.31. The Banks industry median WACC % is 13.20. Bendigo and Adelaide Bank's value of 4.87% is 63.1% below this industry median. Based on the distribution chart, Bendigo and Adelaide Bank ranks #158 out of 1543 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, Bendigo and Adelaide Bank has a GF Score™ of 61/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Bendigo and Adelaide Bank's WACC % compare to PNC and USB?
According to the Banks industry distribution chart, Bendigo and Adelaide Bank ranks #158 out of 1543 companies for WACC %. This places Bendigo and Adelaide Bank in the top 10% of its industry — outperforming the majority of peers. The industry median WACC % is 13.20. Bendigo and Adelaide Bank's value of 4.87% is 63.1% below this benchmark. Historically, Bendigo and Adelaide Bank's own WACC % has ranged from 4.55 to 15.31 over the past decade. While the company's 10-year median is 10.91 vs. the industry median of 13.20, Bendigo and Adelaide Bank has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good WACC % for a Banks company?
The median WACC % among Banks companies is 13.20, based on 1,543 companies in the industry. Companies in the top quartile (top 25%) have a WACC % significantly above this median, while those in the bottom quartile fall well below. However, WACC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Bendigo and Adelaide Bank's current WACC % of 4.87% is 63.1% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high WACC % mean?
A high WACC % can signal that a stock is expensive relative to its fundamentals. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Bendigo and Adelaide Bank and its competitors. For the Banks industry, the median WACC % is 13.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bendigo and Adelaide Bank's current WACC % is 4.87%, which is 55% below median its own 10-year median of 10.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bendigo and Adelaide Bank stock overvalued right now?
Based on GuruFocus' analysis, Bendigo and Adelaide Bank (ASX:BEN) is currently considered Fairly Valued. The stock's GF Value™ is A$11.47, compared to a current price of A$10.46 — trading 8.8% below its estimated fair value. The current WACC % is 4.87%, which is 55% below median its 10-year median of 10.91 and 63.1% below the Banks industry median of 13.20. Bendigo and Adelaide Bank's overall GF Score™ is 61/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is WACC % calculated?
WACC % is calculated from a company's financial statements. For Bendigo and Adelaide Bank (ASX:BEN), the current WACC % is 4.87% as of Jun. 27, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Bendigo and Adelaide Bank (ASX:BEN) Overvalued in 2026?
Based on GuruFocus' analysis, Bendigo and Adelaide Bank stock appears to be undervalued.
The current stock price of A$10.46 is trading 8.8% below its estimated GF Value™ of A$11.47.
GuruFocus considers Bendigo and Adelaide Bank to be Fairly Valued.
Key valuation signals for ASX:BEN:
WACC %: 4.87% (55% below median its 10-year median of 10.91)
GF Value™: A$11.47 vs. price of A$10.46 (8.8% below fair value)
Industry Position: 63.1% below the Banks median (#158 of 1543)
No single metric tells the full story. See the ASX:BEN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founded in 1858 as the Bendigo Building Society as a leading regional bank operating in the consumer, small-business, and rural banking sectors, Bendigo gained public goodwill after rolling out branches in locations deserted by major banks in the late 1990s and early 2000s. The Adelaide Bank merger in 2007 diversified the bank into wholesale banking, while expanding the geographical footprint. It is a conservatively managed retail bank with a long history, a well-regarded retail franchise, and high levels of customer and shareholder loyalty.
61GF Score
Get the complete analysis for ASX:BEN
WACC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
ASX:BEN has been successfully added to your 
