Eventbrite WACC - Weighted Average Cost of Capital
The WACC of Eventbrite Inc (EB) is 6.4%.
| Range | Selected | |
| Cost of equity | 5.7% - 9.3% | 7.5% |
| Tax rate | 0.7% - 3.9% | 2.3% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 4.8% - 8.0% | 6.4% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.4 | 0.8 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.7% | 9.3% |
| Tax rate | 0.7% | 3.9% |
| Debt/Equity ratio | 1.08 | 1.08 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 4.8% | 8.0% |
| Selected WACC | 6.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| EB | Eventbrite Inc | 1.08 | 0.82 | 0.39 |
| DEAL.V | Playgon Games Inc | 4.02 | 0.33 | 0.07 |
| IZEA | IZEA Worldwide Inc | 0 | 1.1 | 1.1 |
| LKCO | Luokung Technology Corp | 70.04 | 0.11 | 0 |
| LOV | Spark Networks SE | 20.48 | 0.45 | 0.02 |
| MAX | MediaAlpha Inc | 0.23 | 0.66 | 0.53 |
| MDF.TO | mdf Commerce Inc | 0.04 | 0.31 | 0.3 |
| MFON | Mobivity Holdings Corp | 0.43 | -0.03 | -0.02 |
| SFUN | Fang Holdings Ltd | 28.89 | 1.01 | 0.03 |
| YNDX | Yandex NV | 0.28 | 1.61 | 1.26 |
| Low | High | |
| Unlevered beta | 0.05 | 0.34 |
| Relevered beta | 0.1 | 0.7 |
| Adjusted relevered beta | 0.4 | 0.8 |
Eventbrite'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 Eventbrite:
cost_of_equity (7.50%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.4) + 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.