BLFR
BlueFire Equipment Corp
Price:  
0.02 
USD
Volume:  
11,870
United States | Manufacturing

BLFR WACC - Weighted Average Cost of Capital

The WACC of BlueFire Equipment Corp (BLFR) is 6.0%.

The Cost of Equity of BlueFire Equipment Corp (BLFR) is 6.1%.
The Cost of Debt of BlueFire Equipment Corp (BLFR) is 7%.

RangeSelected
Cost of equity5.4% - 6.8%6.1%
Tax rate26.2% - 27.0%26.6%
Cost of debt7.0% - 7.0%7%
WACC5.4% - 6.7%6.0%
WACC

BLFR WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium4.6%5.6%
Adjusted beta0.340.34
Additional risk adjustments0.0%0.5%
Cost of equity5.4%6.8%
Tax rate26.2%27.0%
Debt/Equity ratio
0.060.06
Cost of debt7.0%7.0%
After-tax WACC5.4%6.7%
Selected WACC6.0%

BLFR WACC - Detailed calculations of Beta

Debt/EquityUnlevered
PeersCompany NameratioBetabeta
BLFRBlueFire Equipment Corp0.061.371.31
FLRE Flameret Inc 11.22 0.09 0.01
LowHigh
Unlevered beta0.530.79
Relevered beta0.010.01
Adjusted relevered beta0.340.34

BLFR'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 BLFR:

cost_of_equity (6.10%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.34) + 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.