BIGG.CN
BIGG Digital Assets Inc
Price:  
0.21 
CAD
Volume:  
299,516.00
Canada | Software
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BIGG.CN WACC - Weighted Average Cost of Capital

The WACC of BIGG Digital Assets Inc (BIGG.CN) is 6.2%.

The Cost of Equity of BIGG Digital Assets Inc (BIGG.CN) is 6.25%.
The Cost of Debt of BIGG Digital Assets Inc (BIGG.CN) is 5.00%.

Range Selected
Cost of equity 5.30% - 7.20% 6.25%
Tax rate 25.90% - 26.50% 26.20%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.3% - 7.2% 6.2%
WACC

BIGG.CN WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.22 0.34
Additional risk adjustments 1.0% 1.5%
Cost of equity 5.30% 7.20%
Tax rate 25.90% 26.50%
Debt/Equity ratio 0 0
Cost of debt 5.00% 5.00%
After-tax WACC 5.3% 7.2%
Selected WACC 6.2%

BIGG.CN'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 BIGG.CN:

cost_of_equity (6.25%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.22) + risk_adjustments (1.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.