TBRD.V WACC - Weighted Average Cost of Capital
The WACC of Thunderbird Entertainment Group Inc (TBRD.V) is 7.6%.
| Range | Selected | |
| Cost of equity | 8.4% - 12.0% | 10.2% |
| Tax rate | 29.6% - 33.0% | 31.3% |
| Cost of debt | 4.0% - 4.9% | 4.45% |
| WACC | 6.3% - 8.8% | 7.6% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.89 | 1.17 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.4% | 12.0% |
| Tax rate | 29.6% | 33.0% |
| Debt/Equity ratio | 0.59 | 0.59 |
| Cost of debt | 4.0% | 4.9% |
| After-tax WACC | 6.3% | 8.8% |
| Selected WACC | 7.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| TBRD.V | Thunderbird Entertainment Group Inc | 0.59 | 0.59 | 0.42 |
| CIDM | Cinedigm Corp | 0.09 | 1.85 | 1.74 |
| CSSE | Chicken Soup for The Soul Entertainment Inc | 1011.49 | 2.08 | 0 |
| DLPN | Dolphin Entertainment Inc | 1.58 | 1.04 | 0.5 |
| FUGI | Fuego Enterprises Inc | 0.3 | 0.16 | 0.13 |
| GAIA | Gaia Inc | 0.05 | 1.29 | 1.25 |
| LIVX | Livexlive Media Inc | 0.1 | 1.72 | 1.61 |
| NTE.V | Network Media Group Inc | 1.37 | 1.28 | 0.66 |
| WOW.V | Wow Unlimited Media Inc | 0.82 | 2.01 | 1.28 |
| YVR | Liquid Media Group Ltd | 0.1 | 0.71 | 0.66 |
| Low | High | |
| Unlevered beta | 0.59 | 0.89 |
| Relevered beta | 0.84 | 1.25 |
| Adjusted relevered beta | 0.89 | 1.17 |
TBRD.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 TBRD.V:
cost_of_equity (10.20%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.89) + 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.