HIVE.V WACC - Weighted Average Cost of Capital
The WACC of HIVE Blockchain Technologies Ltd (HIVE.V) is 8.1%.
| Range | Selected | |
| Cost of equity | 6.9% - 9.7% | 8.3% |
| Tax rate | 2.0% - 9.3% | 5.65% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 6.7% - 9.5% | 8.1% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.59 | 0.8 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.9% | 9.7% |
| Tax rate | 2.0% | 9.3% |
| Debt/Equity ratio | 0.06 | 0.06 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 6.7% | 9.5% |
| Selected WACC | 8.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| HIVE.V | HIVE Blockchain Technologies Ltd | 0.06 | 3.62 | 3.43 |
| BITF.V | Bitfarms Ltd | 0.17 | 0.98 | 0.84 |
| DOMO | Domo Inc | 0.22 | 1.91 | 1.57 |
| ECOM | ChannelAdvisor Corp | 0 | 0.41 | 0.41 |
| FUBO | Fubotv Inc | 0.3 | -0.85 | -0.66 |
| IDEX | Ideanomics Inc | 406.14 | 0.04 | 0 |
| LCHD | Leader Capital Holdings Corp | 0.23 | -0.05 | -0.04 |
| OPRA | Opera Ltd | 0.01 | 1.6 | 1.59 |
| PRO | Pros Holdings Inc | 0.36 | 1.55 | 1.15 |
| RWWI | Rand Worldwide Inc | 0.01 | 0.55 | 0.54 |
| UPLD | Upland Software Inc | 5.31 | 1.88 | 0.31 |
| Low | High | |
| Unlevered beta | 0.41 | 0.84 |
| Relevered beta | 0.39 | 0.7 |
| Adjusted relevered beta | 0.59 | 0.8 |
HIVE.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 HIVE.V:
cost_of_equity (8.30%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.59) + 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.