BILZ.CN WACC - Weighted Average Cost of Capital

The WACC of Ignite International Brands Ltd (BILZ.CN) is 9.3%.

The Cost of Equity of Ignite International Brands Ltd (BILZ.CN) is 10.10%.

The Cost of Debt of Ignite International Brands Ltd (BILZ.CN) is 5.40%.

	Range	Selected
Cost of equity	7.90% - 12.30%	10.10%
Tax rate	25.90% - 26.50%	26.20%
Cost of debt	5.40% - 5.40%	5.40%
WACC	7.4% - 11.2%	9.3%

WACC

BILZ.CN WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.93	1.34

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.90%	12.30%

Tax rate	25.90%	26.50%
Debt/Equity ratio	0.15	0.15
Cost of debt	5.40%	5.40%

After-tax WACC	7.4%	11.2%


Selected WACC	9.3%

BILZ.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 BILZ.CN:

cost_of_equity (10.10%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.93) + 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.