SAKL WACC - Weighted Average Cost of Capital
The WACC of Sack Lunch Productions Inc (SAKL) is 4.3%.
| Range | Selected | |
| Cost of equity | 15.2% - 135.5% | 75.35% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 3.8% - 4.7% | 4.3% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 2.47 | 23.33 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 15.2% | 135.5% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 120.12 | 120.12 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 3.8% | 4.7% |
| Selected WACC | 4.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SAKL | Sack Lunch Productions Inc | 120.12 | 2.28 | 0.03 |
| HLWD | Almost Never Films Inc | 119.7 | 0.53 | 0.01 |
| LYV | Live Nation Entertainment Inc | 0.18 | 0.98 | 0.86 |
| MANU | Manchester United PLC | 0.25 | 0.73 | 0.62 |
| MSGS | Madison Square Garden Sports Corp | 0.06 | 0.74 | 0.71 |
| MVES | Movie Studio Inc | 149.13 | -0.55 | -0.01 |
| SAPX | Seven Arts Entertainment Inc | 99.78 | 1.07 | 0.01 |
| SMCE | Smc Entertainment Inc | 1.02 | 1.85 | 1.06 |
| SPQS | SportsQuest Inc | 7.12 | -1.5 | -0.24 |
| SSET | StarStream Entertainment Inc | 16.27 | 1.75 | 0.14 |
| CTNA.L | Catena Group PLC | 0.09 | -0.23 | -0.21 |
| Low | High | |
| Unlevered beta | 0.01 | 0.14 |
| Relevered beta | 3.19 | 34.33 |
| Adjusted relevered beta | 2.47 | 23.33 |
SAKL'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 SAKL:
cost_of_equity (75.35%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (2.47) + 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.