ALF WACC - Weighted Average Cost of Capital
The WACC of Alfi Inc (ALF) is 7.6%.
| Range | Selected | |
| Cost of equity | 9.8% - 13.2% | 11.5% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.7% - 8.4% | 7.6% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 1.28 | 1.49 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.8% | 13.2% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.7% | 8.4% |
| Selected WACC | 7.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ALF | Alfi Inc | 0.99 | 0.02 | 0.01 |
| ADBE | Adobe Inc | 0.03 | 0.93 | 0.9 |
| ADSK | Autodesk Inc | 0.04 | 1.07 | 1.05 |
| BIMT | Bitmis Corp | 0.21 | 1.79 | 1.55 |
| CRM | Salesforce.Com Inc | 0.03 | 1.28 | 1.25 |
| CXC.CN | CMX Gold and Silver Corp | 0.06 | 0.39 | 0.37 |
| FRTG | Frontera Group Inc | 3875.97 | -0.37 | 0 |
| INTU | Intuit Inc | 0.03 | 0.71 | 0.69 |
| PNHT | Panamera Healthcare Corp | 0 | 1.08 | 1.08 |
| WDAY | Workday Inc | 0.04 | 1 | 0.97 |
| Low | High | |
| Unlevered beta | 0.82 | 1 |
| Relevered beta | 1.42 | 1.73 |
| Adjusted relevered beta | 1.28 | 1.49 |
ALF'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 ALF:
cost_of_equity (11.50%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.28) + 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.