LBUY WACC - Weighted Average Cost of Capital
The WACC of Leafbuyer Technologies Inc (LBUY) is 4.8%.
| Range | Selected | |
| Cost of equity | 4.4% - 6.7% | 5.55% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.1% - 5.4% | 4.8% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.11 | 0.33 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.4% | 6.7% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 0.74 | 0.74 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.1% | 5.4% |
| Selected WACC | 4.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| LBUY | Leafbuyer Technologies Inc | 0.74 | 6.48 | 4.21 |
| CRWG | Crowdgather Inc | 0.53 | -1.15 | -0.83 |
| DGTW | DigitalTown Inc | 429.14 | 0 | 0 |
| FLYY.CN | Media Central Corporation Inc | 0.26 | -0.24 | -0.2 |
| ILIM | Il2m International Corp | 1.97 | -0.54 | -0.22 |
| MBO.V | Mobio Technologies Inc | 0.71 | -0.39 | -0.26 |
| MKT.V | Deepmarkit Corp | 0.08 | 0.71 | 0.67 |
| WBWB | WU BA Superior Products Holding Group Inc | 10.72 | 0.17 | 0.02 |
| WDDD | Worlds Inc | 1.78 | -1.97 | -0.85 |
| YOO.V | YANGAROO Inc | 0.55 | 1.06 | 0.75 |
| Low | High | |
| Unlevered beta | -0.21 | 0.01 |
| Relevered beta | -0.33 | 0 |
| Adjusted relevered beta | 0.11 | 0.33 |
LBUY'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 LBUY:
cost_of_equity (5.55%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.11) + 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.