BRMG.TA WACC - Weighted Average Cost of Capital

The WACC of Brimag Digital Age Ltd (BRMG.TA) is 6.9%.

The Cost of Equity of Brimag Digital Age Ltd (BRMG.TA) is 9.30%.

The Cost of Debt of Brimag Digital Age Ltd (BRMG.TA) is 5.00%.

	Range	Selected
Cost of equity	8.00% - 10.60%	9.30%
Tax rate	17.40% - 19.10%	18.25%
Cost of debt	5.00% - 5.00%	5.00%
WACC	6.2% - 7.6%	6.9%

WACC

BRMG.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.52	0.66

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.00%	10.60%

Tax rate	17.40%	19.10%
Debt/Equity ratio	0.83	0.83
Cost of debt	5.00%	5.00%

After-tax WACC	6.2%	7.6%


Selected WACC	6.9%

BRMG.TA'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 BRMG.TA:

cost_of_equity (9.30%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.52) + 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.