LIVX
Livexlive Media Inc
Price:  
3.07 
USD
Volume:  
237,830.00
United States | Entertainment
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LIVX WACC - Weighted Average Cost of Capital

The WACC of Livexlive Media Inc (LIVX) is 7.8%.

The Cost of Equity of Livexlive Media Inc (LIVX) is 7.80%.
The Cost of Debt of Livexlive Media Inc (LIVX) is 7.60%.

Range Selected
Cost of equity 6.30% - 9.30% 7.80%
Tax rate 0.30% - 0.50% 0.40%
Cost of debt 7.00% - 8.20% 7.60%
WACC 6.4% - 9.2% 7.8%
WACC

LIVX WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 4.2% 5.2%
Adjusted beta 0.74 0.98
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.30% 9.30%
Tax rate 0.30% 0.50%
Debt/Equity ratio 0.1 0.1
Cost of debt 7.00% 8.20%
After-tax WACC 6.4% 9.2%
Selected WACC 7.8%

LIVX'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 LIVX:

cost_of_equity (7.80%) = risk_free_rate (3.45%) + equity_risk_premium (4.70%) * adjusted_beta (0.74) + 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.