EQG.V WACC - Weighted Average Cost of Capital
The WACC of eQube Gaming Ltd (EQG.V) is 7.3%.
| Range | Selected | |
| Cost of equity | 6.8% - 15.1% | 10.95% |
| Tax rate | 2.1% - 3.4% | 2.75% |
| Cost of debt | 7.0% - 7.4% | 7.2% |
| WACC | 6.9% - 7.8% | 7.3% |
| Category | Low | High |
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 4.7% | 5.7% |
| Adjusted beta | 0.77 | 1.9 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.8% | 15.1% |
| Tax rate | 2.1% | 3.4% |
| Debt/Equity ratio | 10.25 | 10.25 |
| Cost of debt | 7.0% | 7.4% |
| After-tax WACC | 6.9% | 7.8% |
| Selected WACC | 7.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| EQG.V | eQube Gaming Ltd | 10.25 | 2.89 | 0.26 |
| ATHC | Accelerated Technologies Holding Corp | 39200 | 55.55 | 0 |
| AWEB | Areti Web Innovations Inc | 6485.94 | -2.04 | 0 |
| DUUO | Duo World Inc | 128.45 | -54.79 | -0.43 |
| FRZT | Freeze Tag Inc | 0.94 | -0.23 | -0.12 |
| FTWS | Flitways Technology Inc | 638.42 | 51 | 0.08 |
| IHGP | Interact Holdings Group Inc | 0.43 | -0.3 | -0.21 |
| MSTO | Masterbeat Corp | 3076.92 | 105.89 | 0.04 |
| TO.CN | Tower One Wireless Corp | 2.81 | 0.59 | 0.16 |
| UOMO | Uomo Media Inc | 3373.16 | -38.12 | -0.01 |
| Low | High | |
| Unlevered beta | 0 | 0.01 |
| Relevered beta | 0.66 | 2.34 |
| Adjusted relevered beta | 0.77 | 1.9 |
EQG.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 EQG.V:
cost_of_equity (10.95%) = risk_free_rate (3.45%) + equity_risk_premium (5.20%) * adjusted_beta (0.77) + 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.