MCZAF WACC - Weighted Average Cost of Capital
The WACC of Mad Catz Interactive Inc (MCZAF) is 8.0%.
| Range | Selected | |
| Cost of equity | 290906.6% - 521762.5% | 406334.55% |
| Tax rate | 16.4% - 30.8% | 23.6% |
| Cost of debt | 7.0% - 9.4% | 8.2% |
| WACC | 7.2% - 8.9% | 8.0% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 63239.72 | 93171 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 290906.6% | 521762.5% |
| Tax rate | 16.4% | 30.8% |
| Debt/Equity ratio | 221777.6 | 221777.6 |
| Cost of debt | 7.0% | 9.4% |
| After-tax WACC | 7.2% | 8.9% |
| Selected WACC | 8.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| MCZAF | Mad Catz Interactive Inc | 221777.6 | 0 | 0 |
| ALLEX.PA | Lexibook Linguistic Electronic System SA | 0.22 | 1.08 | 0.92 |
| PWS.MI | Powersoft SpA | 0.02 | 0.53 | 0.52 |
| DBO.TO | D-Box Technologies Inc | 0.07 | 0 | 0 |
| GPRO | GoPro Inc | 0.96 | 1.96 | 1.12 |
| GTXO | GTX Corp | 0.6 | 1.22 | 0.83 |
| LBAS | Location Based Technologies Inc | 6.66 | -1.38 | -0.22 |
| SMDM | Singing Machine Company Inc | 0.15 | 0.63 | 0.57 |
| UEIC | Universal Electronics Inc | 0.44 | 1.33 | 0.99 |
| VIOT | Viomi Technology Co Ltd | 0.41 | 1.04 | 0.79 |
| Low | High | |
| Unlevered beta | 0.55 | 0.81 |
| Relevered beta | 94387.15 | 139060.7 |
| Adjusted relevered beta | 63239.72 | 93171 |
MCZAF'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 MCZAF:
cost_of_equity (406,334.55%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (63239.72) + 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.