IPUB WACC - Weighted Average Cost of Capital
The WACC of indiePub Entertainment Inc (IPUB) is 169.0%.
| Range | Selected | |
| Cost of equity | 1149.8% - 2965.7% | 2057.75% |
| Tax rate | 11.0% - 20.5% | 15.75% |
| Cost of debt | 7.0% - 415.7% | 211.35% |
| WACC | 6.7% - 331.4% | 169.0% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 249.12 | 528.72 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 1149.8% | 2965.7% |
| Tax rate | 11.0% | 20.5% |
| Debt/Equity ratio | 2571.57 | 2571.57 |
| Cost of debt | 7.0% | 415.7% |
| After-tax WACC | 6.7% | 331.4% |
| Selected WACC | 169.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| IPUB | indiePub Entertainment Inc | 2571.57 | 0 | 0 |
| EA | Electronic Arts Inc | 0.05 | 0.37 | 0.35 |
| GAME.V | Engine Media Holdings Inc | 1.22 | 0.56 | 0.28 |
| GMGI | Golden Matrix Group Inc | 0.13 | 0.62 | 0.56 |
| GRVY | Gravity Co Ltd | 0.01 | 0.43 | 0.42 |
| MSGM | Motorsport Games Inc | 0 | -0.83 | -0.83 |
| NCTY | The9 Ltd | 0.19 | 1.11 | 0.96 |
| NTES | NetEase Inc | 0.02 | 0.42 | 0.41 |
| PLGC | Playlogic Entertainment Inc | 5.55 | 0 | 0 |
| ZNGA | Zynga Inc | 0.14 | 0.02 | 0.02 |
| Low | High | |
| Unlevered beta | 0.18 | 0.38 |
| Relevered beta | 371.33 | 788.64 |
| Adjusted relevered beta | 249.12 | 528.72 |
IPUB'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 IPUB:
cost_of_equity (2,057.75%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (249.12) + 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.