BRZV WACC - Weighted Average Cost of Capital
The WACC of Fitvia Corp (BRZV) is 4.9%.
| Range | Selected | |
| Cost of equity | 5.4% - 6.8% | 6.1% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.5% - 5.2% | 4.9% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.33 | 0.35 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 6.8% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.5% | 5.2% |
| Selected WACC | 4.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BRZV | Fitvia Corp | 0.97 | -29.59 | -17.32 |
| ALM.V | Alliance Mining Corp | 0.05 | 1.7 | 1.64 |
| EI.CN | Eurogas International Inc | 123.89 | 2.06 | 0.02 |
| HMLA | Homeland Resources Ltd | 5.22 | -0.59 | -0.12 |
| MY.X.CN | Montego Resources Inc | 1.39 | 1.13 | 0.56 |
| NED.V | New Destiny Mining Corp | 0.02 | -1.47 | -1.45 |
| TAPP | Tap Resources Inc | 0 | -1.94 | -1.93 |
| Low | High | |
| Unlevered beta | -0.92 | -0.04 |
| Relevered beta | 0 | 0.03 |
| Adjusted relevered beta | 0.33 | 0.35 |
BRZV'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 BRZV:
cost_of_equity (6.10%) = 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.