DBMM
Digital Brand Media & Marketing Group Inc
Price:  
0.00 
USD
Volume:  
3,245,420.00
United States | Media
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DBMM WACC - Weighted Average Cost of Capital

The WACC of Digital Brand Media & Marketing Group Inc (DBMM) is 4.6%.

The Cost of Equity of Digital Brand Media & Marketing Group Inc (DBMM) is 5.90%.
The Cost of Debt of Digital Brand Media & Marketing Group Inc (DBMM) is 5.50%.

Range Selected
Cost of equity 5.10% - 6.70% 5.90%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 4.00% - 7.00% 5.50%
WACC 3.6% - 5.6% 4.6%
WACC

DBMM WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.28 0.33
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.10% 6.70%
Tax rate 26.20% 27.00%
Debt/Equity ratio 2.51 2.51
Cost of debt 4.00% 7.00%
After-tax WACC 3.6% 5.6%
Selected WACC 4.6%

DBMM'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 DBMM:

cost_of_equity (5.90%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.28) + 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.