The WACC of Playgon Games Inc (DEAL.V) is 4.9%.
Range | Selected | |
Cost of equity | 5.5% - 9.5% | 7.5% |
Tax rate | 26.2% - 27.0% | 26.6% |
Cost of debt | 4.6% - 7.0% | 5.8% |
WACC | 3.8% - 6.0% | 4.9% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 5.1% | 6.1% |
Adjusted beta | 0.32 | 0.76 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 5.5% | 9.5% |
Tax rate | 26.2% | 27.0% |
Debt/Equity ratio | 3.94 | 3.94 |
Cost of debt | 4.6% | 7.0% |
After-tax WACC | 3.8% | 6.0% |
Selected WACC | 4.9% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
DEAL.V | Playgon Games Inc | 3.94 | -0.14 | -0.04 |
CRWG | Crowdgather Inc | 0.53 | -1.15 | -0.83 |
MFON | Mobivity Holdings Corp | 0.57 | -0.13 | -0.09 |
MKT.V | Deepmarkit Corp | 0.08 | 0.71 | 0.67 |
MVEN | Themaven Inc | 0.57 | 0.21 | 0.15 |
MVY.V | Moovly Media Inc | 1.22 | 0.36 | 0.19 |
MYID.V | Killi Ltd | 0.08 | 1.48 | 1.4 |
RSS.V | Resaas Services Inc | 0 | 0.8 | 0.8 |
WBWB | WU BA Superior Products Holding Group Inc | 10.72 | 0.17 | 0.02 |
WDDD | Worlds Inc | 1.78 | -1.97 | -0.85 |
Low | High | |
Unlevered beta | 0 | 0.17 |
Relevered beta | -0.01 | 0.64 |
Adjusted relevered beta | 0.32 | 0.76 |
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 DEAL.V:
cost_of_equity (7.50%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.32) + 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.