OTTV WACC - Weighted Average Cost of Capital
The WACC of Viva Entertainment Group Inc (OTTV) is 3.7%.
| Range | Selected | |
| Cost of equity | 3.2% - 46.7% | 24.95% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 3.7% - 3.7% | 3.7% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | -8.85 | 0.33 |
| Additional risk adjustments | 40.0% | 40.5% |
| Cost of equity | 3.2% | 46.7% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1954.29 | 1954.29 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 3.7% | 3.7% |
| Selected WACC | 3.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| OTTV | Viva Entertainment Group Inc | 1954.29 | -148.71 | -0.1 |
| APPZ | Monster Arts Inc | 345.02 | 0 | 0 |
| APTY | APT Systems Inc | 0.31 | -0.22 | -0.18 |
| AVOI | Advanced Voice Recognition Systems Inc | 0 | -0.88 | -0.88 |
| MYSZ | My Size Inc | 0.07 | 0.12 | 0.11 |
| RIHT | Rightscorp Inc | 0.01 | -0.18 | -0.18 |
| TRAD.V | Voleo Trading Systems Inc | 0.01 | 1.06 | 1.05 |
| Low | High | |
| Unlevered beta | -0.15 | -0.04 |
| Relevered beta | -13.7 | 0 |
| Adjusted relevered beta | -8.85 | 0.33 |
OTTV'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 OTTV:
cost_of_equity (24.95%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (-8.85) + risk_adjustments (40.25%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.