BRMI.TO WACC - Weighted Average Cost of Capital
The WACC of Boat Rocker Media Inc (BRMI.TO) is 4.1%.
| Range | Selected | |
| Cost of equity | 3.8% - 4.8% | 4.3% |
| Tax rate | 25.9% - 26.5% | 26.2% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 3.2% - 5.0% | 4.1% |
| Category | Low | High |
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.02 | 0.02 |
| Additional risk adjustments | 0.5% | 1.0% |
| Cost of equity | 3.8% | 4.8% |
| Tax rate | 25.9% | 26.5% |
| Debt/Equity ratio | 2.14 | 2.14 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 3.2% | 5.0% |
| Selected WACC | 4.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BRMI.TO | Boat Rocker Media Inc | 2.14 | -0.46 | -0.18 |
| Low | High | |
| Unlevered beta | -0.18 | -0.18 |
| Relevered beta | -0.46 | -0.46 |
| Adjusted relevered beta | 0.02 | 0.02 |
BRMI.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 BRMI.TO:
cost_of_equity (4.30%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.02) + risk_adjustments (0.75%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.