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.