SBET
Sharplink Gaming Ltd
Price:  
18.48 
USD
Volume:  
46,227,812.00
Israel | Software
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SBET WACC - Weighted Average Cost of Capital

The WACC of Sharplink Gaming Ltd (SBET) is 7.7%.

The Cost of Equity of Sharplink Gaming Ltd (SBET) is 10.55%.
The Cost of Debt of Sharplink Gaming Ltd (SBET) is 4.80%.

Range Selected
Cost of equity 9.00% - 12.10% 10.55%
Tax rate 0.10% - 0.10% 0.10%
Cost of debt 4.80% - 4.80% 4.80%
WACC 6.9% - 8.4% 7.7%
WACC

SBET WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.12 1.29
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.00% 12.10%
Tax rate 0.10% 0.10%
Debt/Equity ratio 1 1
Cost of debt 4.80% 4.80%
After-tax WACC 6.9% 8.4%
Selected WACC 7.7%

SBET'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 SBET:

cost_of_equity (10.55%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.12) + 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.