BBTV.TO
BBTV Holdings Inc
Price:  
0.37 
CAD
Volume:  
3,208.00
Canada | Entertainment
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

BBTV.TO WACC - Weighted Average Cost of Capital

The WACC of BBTV Holdings Inc (BBTV.TO) is 6.2%.

The Cost of Equity of BBTV Holdings Inc (BBTV.TO) is 21.40%.
The Cost of Debt of BBTV Holdings Inc (BBTV.TO) is 5.50%.

Range Selected
Cost of equity 18.70% - 24.10% 21.40%
Tax rate 20.90% - 27.00% 23.95%
Cost of debt 4.00% - 7.00% 5.50%
WACC 5.0% - 7.4% 6.2%
WACC

BBTV.TO WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 3.04 3.28
Additional risk adjustments 0.0% 0.5%
Cost of equity 18.70% 24.10%
Tax rate 20.90% 27.00%
Debt/Equity ratio 7.48 7.48
Cost of debt 4.00% 7.00%
After-tax WACC 5.0% 7.4%
Selected WACC 6.2%

BBTV.TO'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 BBTV.TO:

cost_of_equity (21.40%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (3.04) + 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.