BIRD WACC - Weighted Average Cost of Capital
The WACC of Infobird Co Ltd (BIRD) is 6.7%.
| Range | Selected | |
| Cost of equity | 5.4% - 7.7% | 6.55% |
| Tax rate | 1.6% - 1.9% | 1.75% |
| Cost of debt | 7.0% - 7.0% | 7% |
| WACC | 6.1% - 7.3% | 6.7% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.33 | 0.51 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 7.7% |
| Tax rate | 1.6% | 1.9% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 7.0% | 7.0% |
| After-tax WACC | 6.1% | 7.3% |
| Selected WACC | 6.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BIRD | Infobird Co Ltd | 1.14 | 1.35 | 0.64 |
| BTV.V | BlueRush Inc | 13.03 | 1.97 | 0.14 |
| ELCO | Elcom International Inc | 0.05 | -0.96 | -0.91 |
| GOK.V | Ginsms Inc | 2.25 | 1.78 | 0.55 |
| MCLD.V | mCloud Technologies Corp | 4.99 | -1.29 | -0.22 |
| PCLI | Protocall Technologies Inc | 5.79 | 0.9 | 0.13 |
| UI.V | Urbanimmersive Inc | 2.62 | 0.68 | 0.19 |
| VIS.V | Visionstate Corp | 0.02 | -0.52 | -0.51 |
| VSST | Voice Assist Inc | 0.76 | 0.99 | 0.57 |
| Low | High | |
| Unlevered beta | 0.14 | 0.18 |
| Relevered beta | 0 | 0.27 |
| Adjusted relevered beta | 0.33 | 0.51 |
BIRD'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 BIRD:
cost_of_equity (6.55%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.33) + 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.