GBE.V
Lifestyle Global Brands Ltd
Price:  
0.02 
CAD
Volume:  
3,720.00
Hong Kong | Metals & Mining
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GBE.V WACC - Weighted Average Cost of Capital

The WACC of Lifestyle Global Brands Ltd (GBE.V) is 5.0%.

The Cost of Equity of Lifestyle Global Brands Ltd (GBE.V) is 7.00%.
The Cost of Debt of Lifestyle Global Brands Ltd (GBE.V) is 5.00%.

Range Selected
Cost of equity 5.60% - 8.40% 7.00%
Tax rate 27.00% - 27.00% 27.00%
Cost of debt 5.00% - 5.00% 5.00%
WACC 4.4% - 5.5% 5.0%
WACC

GBE.V WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 4.7% 5.7%
Adjusted beta 0.52 0.74
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.60% 8.40%
Tax rate 27.00% 27.00%
Debt/Equity ratio 1.57 1.57
Cost of debt 5.00% 5.00%
After-tax WACC 4.4% 5.5%
Selected WACC 5.0%

GBE.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 GBE.V:

cost_of_equity (7.00%) = risk_free_rate (3.45%) + equity_risk_premium (5.20%) * adjusted_beta (0.52) + 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.