SCR.TO
Score Media and Gaming Inc
Price:  
25.57 
CAD
Volume:  
15,701.00
Canada | Entertainment
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SCR.TO WACC - Weighted Average Cost of Capital

The WACC of Score Media and Gaming Inc (SCR.TO) is 9.2%.

The Cost of Equity of Score Media and Gaming Inc (SCR.TO) is 8.00%.
The Cost of Debt of Score Media and Gaming Inc (SCR.TO) is 15.50%.

Range Selected
Cost of equity 6.40% - 9.60% 8.00%
Tax rate 24.40% - 26.60% 25.50%
Cost of debt 4.20% - 26.80% 15.50%
WACC 5.3% - 13.0% 9.2%
WACC

SCR.TO WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.64 0.9
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.40% 9.60%
Tax rate 24.40% 26.60%
Debt/Equity ratio 0.51 0.51
Cost of debt 4.20% 26.80%
After-tax WACC 5.3% 13.0%
Selected WACC 9.2%

SCR.TO'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 SCR.TO:

cost_of_equity (8.00%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.64) + 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.