BCOV
Brightcove Inc
Price:  
4.45 
USD
Volume:  
300,176
United States | IT Services

BCOV WACC - Weighted Average Cost of Capital

The WACC of Brightcove Inc (BCOV) is 7.0%.

The Cost of Equity of Brightcove Inc (BCOV) is 9.2%.
The Cost of Debt of Brightcove Inc (BCOV) is 5%.

RangeSelected
Cost of equity7.2% - 11.2%9.2%
Tax rate4.3% - 7.8%6.05%
Cost of debt5.0% - 5.0%5%
WACC6.0% - 7.9%7.0%
WACC

BCOV WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium4.6%5.6%
Adjusted beta0.721.14
Additional risk adjustments0.0%0.5%
Cost of equity7.2%11.2%
Tax rate4.3%7.8%
Debt/Equity ratio
11
Cost of debt5.0%5.0%
After-tax WACC6.0%7.9%
Selected WACC7.0%

BCOV'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 BCOV:

cost_of_equity (9.20%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.72) + 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.