LOV WACC - Weighted Average Cost of Capital
The WACC of Spark Networks SE (LOV) is 50.1%.
| Range | Selected | |
| Cost of equity | 10.7% - 17.9% | 14.3% |
| Tax rate | 17.4% - 22.4% | 19.9% |
| Cost of debt | 17.0% - 115.6% | 66.3% |
| WACC | 13.9% - 86.3% | 50.1% |
| Category | Low | High |
| Long-term bond rate | 4.2% | 4.7% |
| Equity market risk premium | 5.0% | 6.0% |
| Adjusted beta | 1.3 | 2.12 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.7% | 17.9% |
| Tax rate | 17.4% | 22.4% |
| Debt/Equity ratio | 20.48 | 20.48 |
| Cost of debt | 17.0% | 115.6% |
| After-tax WACC | 13.9% | 86.3% |
| Selected WACC | 50.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| LOV | Spark Networks SE | 20.48 | 0.45 | 0.03 |
| BYOC | Beyond Commerce Inc | 4.42 | 26.48 | 5.77 |
| FDIT | Findit Inc | 0.01 | 1.42 | 1.41 |
| IZEA | IZEA Worldwide Inc | 0 | 1.31 | 1.31 |
| LKCO | Luokung Technology Corp | 88.72 | 0.11 | 0 |
| MDF.TO | mdf Commerce Inc | 0.04 | 0.31 | 0.3 |
| MVEN | Themaven Inc | 0.57 | 0.21 | 0.14 |
| MYID.V | Killi Ltd | 0.12 | 1.74 | 1.59 |
| SFUN | Fang Holdings Ltd | 28.89 | 1.01 | 0.04 |
| YNDX | Yandex NV | 0.28 | 1.61 | 1.31 |
| Low | High | |
| Unlevered beta | 0.24 | 1.31 |
| Relevered beta | 1.45 | 2.67 |
| Adjusted relevered beta | 1.3 | 2.12 |
LOV'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 LOV:
cost_of_equity (14.30%) = risk_free_rate (4.45%) + equity_risk_premium (5.50%) * adjusted_beta (1.3) + 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.