As of today (2026-07-01), Banco Bilbao Vizcaya Argentaria Colombia's weighted average cost of capital is 40.89%%. Banco Bilbao Vizcaya Argentaria Colombia's ROIC % is 0.00% (calculated using TTM income statement data).
Banco Bilbao Vizcaya Argentaria Colombia earns returns that do not match up to its cost of capital. It will destroy value as it grows.
*Note: The beta of this company cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
For a comprehensive WACC calculation, please access the WACC Calculator.
Banco Bilbao Vizcaya Argentaria Colombia (BOG:BBVACOL) 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, Banco Bilbao Vizcaya Argentaria Colombia's weighted average cost of capital is 40.89%%. Banco Bilbao Vizcaya Argentaria Colombia's ROIC % is 0.00% (calculated using TTM income statement data).
Banco Bilbao Vizcaya Argentaria Colombia earns returns that do not match up to its cost of capital. It will destroy value as it grows.
*Note: The beta of this company cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
Be Aware
1. GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding latest one-year quarterly 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 quarterly average debt to get the simplified cost of debt.
Related Terms
Banco Bilbao Vizcaya Argentaria Colombia WACC % Historical Data
* 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.
Banco Bilbao Vizcaya Argentaria Colombia WACC % Chart
Banco Bilbao Vizcaya Argentaria Colombia Annual Data
For the Banks - Regional subindustry, Banco Bilbao Vizcaya Argentaria Colombia'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.
Banco Bilbao Vizcaya Argentaria Colombia WACC % vs Banks Industry
Banco Bilbao Vizcaya Argentaria Colombia WACC % Calculation
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, Banco Bilbao Vizcaya Argentaria Colombia's market capitalization (E) is COP3735632.483 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 quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Mar. 2026, Banco Bilbao Vizcaya Argentaria Colombia's latest one-year quarterly average Book Value of Debt (D) is COP6500862 Mil.
a) weight of equity = E / (E + D) = 3735632.483 / (3735632.483 + 6500862) = 0.3649
b) weight of debt = D / (E + D) = 6500862 / (3735632.483 + 6500862) = 0.6351
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 14.01%. 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. Banco Bilbao Vizcaya Argentaria Colombia's beta cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
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 = 14.01% + 1 * 6% = 20.01%
3. Cost of Debt:
GuruFocus uses latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
As of Mar. 2026, Banco Bilbao Vizcaya Argentaria Colombia's interest expense (positive number) was COP5743960 Mil. Its total Book Value of Debt (D) is COP6500862 Mil.
Cost of Debt = 5743960 / 6500862 = 88.3569%.
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 = 421739 / 1050761 = 40.14%.
* 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.
Banco Bilbao Vizcaya Argentaria Colombia (BOG:BBVACOL) has a WACC % of 40.89% as of Jul. 01, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Banco Bilbao Vizcaya Argentaria Colombia and its competitors. This is 65% above median its historical median of 24.85. Over the past decade, Banco Bilbao Vizcaya Argentaria Colombia's WACC % has ranged from 15.92 to 62.28. According to the industry distribution chart, Banco Bilbao Vizcaya Argentaria Colombia ranks #1471 out of 1544 companies in the Banks industry, placing it in the top 95.3%.
Is Banco Bilbao Vizcaya Argentaria Colombia's WACC % too high?
Banco Bilbao Vizcaya Argentaria Colombia's current WACC % of 40.89% is 65% above median its 10-year median of 24.85. Over the past 10 years, this metric has ranged from a low of 15.92 to a high of 62.28. The Banks industry median WACC % is 13.18. Banco Bilbao Vizcaya Argentaria Colombia's value of 40.89% is 210.2% above this industry median. Based on the distribution chart, Banco Bilbao Vizcaya Argentaria Colombia ranks #1471 out of 1544 companies in the Banks industry, which is in the bottom quartile relative to peers. Overall, Banco Bilbao Vizcaya Argentaria Colombia has a GF Score™ of 19/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Banco Bilbao Vizcaya Argentaria Colombia's WACC % compare to PNC and USB?
According to the Banks industry distribution chart, Banco Bilbao Vizcaya Argentaria Colombia ranks #1471 out of 1544 companies for WACC %. This places Banco Bilbao Vizcaya Argentaria Colombia in the lower half of its industry. The industry median WACC % is 13.18. Banco Bilbao Vizcaya Argentaria Colombia's value of 40.89% is 210.2% above this benchmark. Historically, Banco Bilbao Vizcaya Argentaria Colombia's own WACC % has ranged from 15.92 to 62.28 over the past decade. While the company's 10-year median is 24.85 vs. the industry median of 13.18, Banco Bilbao Vizcaya Argentaria Colombia has consistently been above 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 13.18, based on 1,544 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. Banco Bilbao Vizcaya Argentaria Colombia's current WACC % of 40.89% is 210.2% above 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 Banco Bilbao Vizcaya Argentaria Colombia and its competitors. For the Banks industry, the median WACC % is 13.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Banco Bilbao Vizcaya Argentaria Colombia's current WACC % is 40.89%, which is 65% above median its own 10-year median of 24.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Banco Bilbao Vizcaya Argentaria Colombia stock overvalued right now?
Based on GuruFocus' analysis, Banco Bilbao Vizcaya Argentaria Colombia (BOG:BBVACOL) is currently considered Fairly Valued. The stock's GF Value™ is COP206.97, compared to a current price of COP210.00 — trading 1.5% above its estimated fair value. The current WACC % is 40.89%, which is 65% above median its 10-year median of 24.85 and 210.2% above the Banks industry median of 13.18. Banco Bilbao Vizcaya Argentaria Colombia's overall GF Score™ is 19/100 with 4 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 Banco Bilbao Vizcaya Argentaria Colombia (BOG:BBVACOL), the current WACC % is 40.89% as of Jul. 01, 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 Banco Bilbao Vizcaya Argentaria Colombia (BOG:BBVACOL) Overvalued in 2026?
Based on GuruFocus' analysis, Banco Bilbao Vizcaya Argentaria Colombia stock appears to be overvalued.
The current stock price of COP210.00 is trading 1.5% above its estimated GF Value™ of COP206.97.
GuruFocus considers Banco Bilbao Vizcaya Argentaria Colombia to be Fairly Valued.
Key valuation signals for BOG:BBVACOL:
WACC %: 40.89% (65% above median its 10-year median of 24.85)
GF Value™: COP206.97 vs. price of COP210.00 (1.5% above fair value)
Industry Position: 210.2% above the Banks median (#1471 of 1544)
No single metric tells the full story. See the BOG:BBVACOL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Banco Bilbao Vizcaya Argentaria Colombia Business Description
Banco Bilbao Vizcaya Argentaria Colombia SA operates as a private banking institution. The company's main activities include providing loans to both public and private sector companies as well as individuals. It is also involved in international banking, privatizations, financial projects, and other general banking activities, as well as offering leasing services. The operating business segments are Commercial Banking, Enterprise and Institutional Banking, Corporate and Investment Banking, Asset and Liability Management, and Other Segments. The company operates in cities and towns throughout Colombia and it generates revenue through interest and service fees.
19GF Score
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