GLBR
Global Brokerage Inc
Price:  
0.00 
USD
Volume:  
790.00
United States | Capital Markets
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GLBR WACC - Weighted Average Cost of Capital

The WACC of Global Brokerage Inc (GLBR) is 13.1%.

The Cost of Equity of Global Brokerage Inc (GLBR) is 73,982.30%.
The Cost of Debt of Global Brokerage Inc (GLBR) is 16.55%.

Range Selected
Cost of equity 47,084.10% - 100,880.50% 73,982.30%
Tax rate 20.70% - 24.60% 22.65%
Cost of debt 9.20% - 23.90% 16.55%
WACC 7.5% - 18.6% 13.1%
WACC

GLBR WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 10234.84 18013.5
Additional risk adjustments 0.0% 0.5%
Cost of equity 47,084.10% 100,880.50%
Tax rate 20.70% 24.60%
Debt/Equity ratio 169349.08 169349.08
Cost of debt 9.20% 23.90%
After-tax WACC 7.5% 18.6%
Selected WACC 13.1%

GLBR'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 GLBR:

cost_of_equity (73,982.30%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (10234.84) + 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.