SPS.A.V WACC - Weighted Average Cost of Capital
The WACC of Sportscene Group Inc (SPS.A.V) is 6.7%.
| Range | Selected | |
| Cost of equity | 6.4% - 10.0% | 8.2% |
| Tax rate | 28.3% - 32.0% | 30.15% |
| Cost of debt | 7.0% - 7.3% | 7.15% |
| WACC | 5.7% - 7.7% | 6.7% |
| Category | Low | High |
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 4.7% | 5.7% |
| Adjusted beta | 0.68 | 1.01 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.4% | 10.0% |
| Tax rate | 28.3% | 32.0% |
| Debt/Equity ratio | 0.86 | 0.86 |
| Cost of debt | 7.0% | 7.3% |
| After-tax WACC | 5.7% | 7.7% |
| Selected WACC | 6.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SPS.A.V | Sportscene Group Inc | 0.86 | 1.11 | 0.7 |
| AEG.TO | Aegis Brands Inc | 0.93 | -0.1 | -0.06 |
| AMHG | Amergent Hospitality Group Inc | 4553.77 | 297.52 | 0.1 |
| ARKR | Ark Restaurants Corp | 0.13 | 0.63 | 0.58 |
| BBQ | BBQ Holdings Inc | 0.08 | 1.63 | 1.55 |
| BDL | Flanigan's Enterprises Inc | 0.49 | 0.06 | 0.05 |
| GCFB | Granite City Food & Brewery Ltd | 38785.16 | 266.68 | 0.01 |
| IPIC | Ipic Entertainment Inc | 26547172 | 0 | 0 |
| NATH | Nathan's Famous Inc | 0.15 | 0.68 | 0.62 |
| Low | High | |
| Unlevered beta | 0.06 | 0.48 |
| Relevered beta | 0.52 | 1.01 |
| Adjusted relevered beta | 0.68 | 1.01 |
SPS.A.V'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 SPS.A.V:
cost_of_equity (8.20%) = risk_free_rate (3.45%) + equity_risk_premium (5.20%) * adjusted_beta (0.68) + 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.