GFOO WACC - Weighted Average Cost of Capital
The WACC of Genufood Energy Enzymes Corp (GFOO) is 4.7%.
| Range | Selected | |
| Cost of equity | 4.5% - 6.8% | 5.65% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.1% - 5.2% | 4.7% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.15 | 0.34 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.5% | 6.8% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.1% | 5.2% |
| Selected WACC | 4.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| GFOO | Genufood Energy Enzymes Corp | 1.04 | -0.35 | -0.2 |
| DROP | Fuse Science Inc | 1.28 | 1.29 | 0.67 |
| GBLP | Global Pharmatech Inc | 0.03 | 0.12 | 0.12 |
| GENX.V | GenixPharmaceucticals Corporation | 0.51 | -0.76 | -0.55 |
| JOEY | Joey New York Inc | 106.89 | 0 | 0 |
| KGKG | Kona Gold Beverage Inc | 12.09 | 1.15 | 0.12 |
| LQWC | Lifequest World Corp | 2.83 | -1.2 | -0.39 |
| NUUU | Rejuvel Bio-Sciences Inc | 307 | 0 | 0 |
| NUVM | NuVim Inc | 0.48 | -0.9 | -0.67 |
| NWYU | New You Inc | 67.79 | 0.99 | 0.02 |
| VPI.V | Vitality Products Inc | 0 | -0.93 | -0.93 |
| Low | High | |
| Unlevered beta | -0.2 | 0 |
| Relevered beta | -0.27 | 0.01 |
| Adjusted relevered beta | 0.15 | 0.34 |
GFOO'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 GFOO:
cost_of_equity (5.65%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.15) + 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.