BBIG
Vinco Ventures Inc
Price:  
4.73 
USD
Volume:  
17,950,838
United States | Leisure Products

BBIG WACC - Weighted Average Cost of Capital

The WACC of Vinco Ventures Inc (BBIG) is 8.6%.

The Cost of Equity of Vinco Ventures Inc (BBIG) is 45046.25%.
The Cost of Debt of Vinco Ventures Inc (BBIG) is 6.55%.

RangeSelected
Cost of equity36989.9% - 53102.6%45046.25%
Tax rate0.2% - 2.6%1.4%
Cost of debt6.1% - 7.0%6.55%
WACC7.9% - 9.3%8.6%
WACC

BBIG WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium4.6%5.6%
Adjusted beta8040.459481.74
Additional risk adjustments0.0%0.5%
Cost of equity36989.9%53102.6%
Tax rate0.2%2.6%
Debt/Equity ratio
21416.421416.4
Cost of debt6.1%7.0%
After-tax WACC7.9%9.3%
Selected WACC8.6%

BBIG'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 BBIG:

cost_of_equity (45,046.25%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (8040.45) + 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.