The WACC of Global Gaming Technologies Corp (BLKCF) is 4.0%.
Range | Selected | |
Cost of equity | 49.5% - 5595.7% | 2822.6% |
Tax rate | 26.2% - 27.0% | 26.6% |
Cost of debt | 5.0% - 5.0% | 5% |
WACC | 3.7% - 4.4% | 4.0% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 9.91 | 998.36 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 49.5% | 5595.7% |
Tax rate | 26.2% | 27.0% |
Debt/Equity ratio | 7508.26 | 7508.26 |
Cost of debt | 5.0% | 5.0% |
After-tax WACC | 3.7% | 4.4% |
Selected WACC | 4.0% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
BLKCF | Global Gaming Technologies Corp | 7508.26 | -3.58 | 0 |
BCOR | Blucora Inc | 0.43 | 1.24 | 0.95 |
CGRA | Cgrowth Capital Inc | 0.01 | -0.11 | -0.11 |
ESGW.V | ESG Global Impact Capital Inc | 0.06 | 1.02 | 0.98 |
GLAE | Glassbridge Enterprises Inc | 3.98 | 0.17 | 0.04 |
HCC.V | Hanna Capital Corp | 0.44 | 0.01 | 0 |
HPIL | HPIL Holding | 15.83 | 0 | 0 |
IDEA | Aeon Ventures Inc | 0.42 | -1.16 | -0.89 |
MMM.V | Minco Capital Corp | 0.08 | 0.65 | 0.61 |
WP.V | Western Pacific Trust Co | 0.16 | 1.91 | 1.71 |
Low | High | |
Unlevered beta | 0 | 0.27 |
Relevered beta | 14.3 | 1489.6 |
Adjusted relevered beta | 9.91 | 998.36 |
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 BLKCF:
cost_of_equity (2,822.60%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (9.91) + 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.