BBIG WACC - Weighted Average Cost of Capital
The WACC of Vinco Ventures Inc (BBIG) is 8.7%.
| Range | Selected | |
| Cost of equity | 18692.5% - 28504.1% | 23598.3% |
| Tax rate | 0.2% - 2.6% | 1.4% |
| Cost of debt | 6.1% - 7.0% | 6.55% |
| WACC | 7.9% - 9.5% | 8.7% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 4062.74 | 5089.16 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 18692.5% | 28504.1% |
| Tax rate | 0.2% | 2.6% |
| Debt/Equity ratio | 10708.2 | 10708.2 |
| Cost of debt | 6.1% | 7.0% |
| After-tax WACC | 7.9% | 9.5% |
| Selected WACC | 8.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BBIG | Vinco Ventures Inc | 10708.2 | -10.99 | 0 |
| BC | Brunswick Corp | 0.59 | 0.28 | 0.18 |
| CLAR | Clarus Corp | 0.01 | 0.83 | 0.81 |
| ESCA | Escalade Inc | 0.13 | 0.73 | 0.64 |
| LEAT | Leatt Corp | 0.01 | 0.97 | 0.95 |
| MAT | Mattel Inc | 0.36 | 0.82 | 0.61 |
| MCFT | Mastercraft Boat Holdings Inc | 0.15 | 1.06 | 0.93 |
| NLS | Nautilus Inc | 0.96 | 1.59 | 0.81 |
| SWBI | Smith & Wesson Brands Inc | 0.3 | 0.53 | 0.4 |
| TVPC | Twin Vee Powercats Inc | 0.07 | -0.09 | -0.08 |
| VSTO | Vista Outdoor Inc | 0.28 | 0.65 | 0.51 |
| Low | High | |
| Unlevered beta | 0.51 | 0.64 |
| Relevered beta | 6063.3 | 7595.27 |
| Adjusted relevered beta | 4062.74 | 5089.16 |
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 (23,598.30%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (4062.74) + 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.