The WACC of Wherevertv Broadcasting Corp (TVTV) is 5.8%.
Range | Selected | |
Cost of equity | 5.5% - 7.0% | 6.25% |
Tax rate | 26.2% - 27.0% | 26.6% |
Cost of debt | 7.0% - 7.0% | 7% |
WACC | 5.4% - 6.2% | 5.8% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.36 | 0.38 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 5.5% | 7.0% |
Tax rate | 26.2% | 27.0% |
Debt/Equity ratio | 0.77 | 0.77 |
Cost of debt | 7.0% | 7.0% |
After-tax WACC | 5.4% | 6.2% |
Selected WACC | 5.8% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
TVTV | Wherevertv Broadcasting Corp | 0.77 | -0.58 | -0.37 |
ATUS | Altice USA Inc | 24.13 | 0.57 | 0.03 |
CABO | Cable One Inc | 4.67 | 0.15 | 0.03 |
CCA.TO | Cogeco Communications Inc | 1.57 | 0.3 | 0.14 |
CGO.TO | Cogeco Inc | 8.96 | 0.39 | 0.05 |
MSGN | MSG Networks Inc | 1.34 | 1.15 | 0.58 |
NXMR | Nextmart Inc | 16.92 | 0.63 | 0.05 |
QBR.B.TO | Quebecor Inc | 0.84 | -0.25 | -0.15 |
SAT.V | Asian Television Network International Ltd | 0.78 | -0.24 | -0.15 |
WOW | WideOpenWest Inc | 2.85 | 0.61 | 0.2 |
Low | High | |
Unlevered beta | 0.03 | 0.05 |
Relevered beta | 0.04 | 0.07 |
Adjusted relevered beta | 0.36 | 0.38 |
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 TVTV:
cost_of_equity (6.25%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.36) + 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.