TVTV
Wherevertv Broadcasting Corp
Price:  
USD
Volume:  
17,670
United States | Media

TVTV WACC - Weighted Average Cost of Capital

The WACC of Wherevertv Broadcasting Corp (TVTV) is 5.8%.

The Cost of Equity of Wherevertv Broadcasting Corp (TVTV) is 6.25%.
The Cost of Debt of Wherevertv Broadcasting Corp (TVTV) is 7%.

RangeSelected
Cost of equity5.5% - 7.0%6.25%
Tax rate26.2% - 27.0%26.6%
Cost of debt7.0% - 7.0%7%
WACC5.4% - 6.2%5.8%
WACC

TVTV WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium4.6%5.6%
Adjusted beta0.360.38
Additional risk adjustments0.0%0.5%
Cost of equity5.5%7.0%
Tax rate26.2%27.0%
Debt/Equity ratio
0.770.77
Cost of debt7.0%7.0%
After-tax WACC5.4%6.2%
Selected WACC5.8%

TVTV'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 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.