BBRW
Brewbilt Manufacturing Inc
Price:  
0.00 
USD
Volume:  
448,940.00
United States | Machinery
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BBRW WACC - Weighted Average Cost of Capital

The WACC of Brewbilt Manufacturing Inc (BBRW) is 3.8%.

The Cost of Equity of Brewbilt Manufacturing Inc (BBRW) is 77.80%.
The Cost of Debt of Brewbilt Manufacturing Inc (BBRW) is 5.00%.

Range Selected
Cost of equity 6.40% - 149.20% 77.80%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 5.00% - 5.00% 5.00%
WACC 3.7% - 3.8% 3.8%
WACC

BBRW WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.55 25.77
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.40% 149.20%
Tax rate 26.20% 27.00%
Debt/Equity ratio 869.78 869.78
Cost of debt 5.00% 5.00%
After-tax WACC 3.7% 3.8%
Selected WACC 3.8%

BBRW'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 BBRW:

cost_of_equity (77.80%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.55) + 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.