Business Valuation Case

Based on our estimation along with the information data given to calculate the weighted average cost of capital (WACC), we find that the WACC is at 1.827%. This is our determined rate that Ubisoft will use in their valuation. We came up with such an estimate by assuming that the rate of growth is 1.2%, as the Group stated in their 2020 report page (223), in which the company expects their growth rate to range between 0-1.5%. While the number of shares outstanding is 120,951,098 shares (page 301, 2020). Also, we assume the tax rate to be 30% based on our forecast. See the exhibit table below for more information.