SCR.TO WACC - Weighted Average Cost of Capital

The WACC of Score Media and Gaming Inc (SCR.TO) is 9.7%.

The Cost of Equity of Score Media and Gaming Inc (SCR.TO) is 8.95%.

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

	Range	Selected
Cost of equity	7.30% - 10.60%	8.95%
Tax rate	24.40% - 26.60%	25.50%
Cost of debt	4.20% - 26.80%	15.50%
WACC	6.0% - 13.4%	9.7%

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	0.81	1.05

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.30%	10.60%

Tax rate	24.40%	26.60%
Debt/Equity ratio	0.46	0.46
Cost of debt	4.20%	26.80%

After-tax WACC	6.0%	13.4%


Selected WACC	9.7%

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 (8.95%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.81) + 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.