FEEL.CN
Feel Foods Ltd
Price:  
0.13 
CAD
Volume:  
722,700.00
Canada | N/A
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

FEEL.CN WACC - Weighted Average Cost of Capital

The WACC of Feel Foods Ltd (FEEL.CN) is 17.1%.

The Cost of Equity of Feel Foods Ltd (FEEL.CN) is 19.90%.
The Cost of Debt of Feel Foods Ltd (FEEL.CN) is 5.50%.

Range Selected
Cost of equity 17.90% - 21.90% 19.90%
Tax rate 26.50% - 26.50% 26.50%
Cost of debt 4.00% - 7.00% 5.50%
WACC 15.3% - 19.0% 17.1%
WACC

FEEL.CN WACC calculation

Category Low High
Long-term bond rate 3.4% 3.9%
Equity market risk premium 4.7% 5.7%
Adjusted beta 3.06 3.06
Additional risk adjustments 0.0% 0.5%
Cost of equity 17.90% 21.90%
Tax rate 26.50% 26.50%
Debt/Equity ratio 0.21 0.21
Cost of debt 4.00% 7.00%
After-tax WACC 15.3% 19.0%
Selected WACC 17.1%

FEEL.CN'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 FEEL.CN:

cost_of_equity (19.90%) = risk_free_rate (3.65%) + equity_risk_premium (5.20%) * adjusted_beta (3.06) + 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.