GNUS
Genius Brands International Inc
Price:  
3.24 
USD
Volume:  
757,961.00
United States | Leisure Products
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GNUS WACC - Weighted Average Cost of Capital

The WACC of Genius Brands International Inc (GNUS) is 5.4%.

The Cost of Equity of Genius Brands International Inc (GNUS) is 6.50%.
The Cost of Debt of Genius Brands International Inc (GNUS) is 5.50%.

Range Selected
Cost of equity 5.80% - 7.20% 6.50%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 4.00% - 7.00% 5.50%
WACC 4.5% - 6.2% 5.4%
WACC

GNUS WACC calculation

Category Low High
Long-term bond rate 4.2% 4.7%
Equity market risk premium 5.0% 6.0%
Adjusted beta 0.33 0.33
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.80% 7.20%
Tax rate 26.20% 27.00%
Debt/Equity ratio 0.8 0.8
Cost of debt 4.00% 7.00%
After-tax WACC 4.5% 6.2%
Selected WACC 5.4%

GNUS'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 GNUS:

cost_of_equity (6.50%) = risk_free_rate (4.45%) + equity_risk_premium (5.50%) * adjusted_beta (0.33) + 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.