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 21.70%.

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

	Range	Selected
Cost of equity	18.70% - 24.70%	21.70%
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	3.37

Additional risk adjustments	0.0%	0.5%
Cost of equity	18.70%	24.70%

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 (21.70%) = 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.