BRAG.TO
Bragg Gaming Group Inc
Price:  
6.18 
CAD
Volume:  
22,500.00
Canada | Interactive Media & Services
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BRAG.TO WACC - Weighted Average Cost of Capital

The WACC of Bragg Gaming Group Inc (BRAG.TO) is 6.6%.

The Cost of Equity of Bragg Gaming Group Inc (BRAG.TO) is 6.90%.
The Cost of Debt of Bragg Gaming Group Inc (BRAG.TO) is 5.00%.

Range Selected
Cost of equity 5.90% - 7.90% 6.90%
Tax rate 18.90% - 26.30% 22.60%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.7% - 7.4% 6.6%
WACC

BRAG.TO WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.53 0.61
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.90% 7.90%
Tax rate 18.90% 26.30%
Debt/Equity ratio 0.11 0.11
Cost of debt 5.00% 5.00%
After-tax WACC 5.7% 7.4%
Selected WACC 6.6%

BRAG.TO'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 BRAG.TO:

cost_of_equity (6.90%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.53) + 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.