DEAL.V
Playgon Games Inc
Price:  
0.01 
CAD
Volume:  
241,000
Canada | Interactive Media & Services

DEAL.V WACC - Weighted Average Cost of Capital

The WACC of Playgon Games Inc (DEAL.V) is 4.9%.

The Cost of Equity of Playgon Games Inc (DEAL.V) is 7.5%.
The Cost of Debt of Playgon Games Inc (DEAL.V) is 5.8%.

RangeSelected
Cost of equity5.5% - 9.5%7.5%
Tax rate26.2% - 27.0%26.6%
Cost of debt4.6% - 7.0%5.8%
WACC3.8% - 6.0%4.9%
WACC

DEAL.V WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium5.1%6.1%
Adjusted beta0.320.76
Additional risk adjustments0.0%0.5%
Cost of equity5.5%9.5%
Tax rate26.2%27.0%
Debt/Equity ratio
3.943.94
Cost of debt4.6%7.0%
After-tax WACC3.8%6.0%
Selected WACC4.9%

DEAL.V'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 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.