GSFD WACC - Weighted Average Cost of Capital
The WACC of Global Seafood Technologies Inc (GSFD) is 6.6%.
| Range | Selected | |
| Cost of equity | 5.2% - 6.8% | 6% |
| Tax rate | 2.1% - 15.5% | 8.8% |
| Cost of debt | 7.0% - 8.9% | 7.95% |
| WACC | 6.1% - 7.2% | 6.6% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.3 | 0.34 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.2% | 6.8% |
| Tax rate | 2.1% | 15.5% |
| Debt/Equity ratio | 1.18 | 1.18 |
| Cost of debt | 7.0% | 8.9% |
| After-tax WACC | 6.1% | 7.2% |
| Selected WACC | 6.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| GSFD | Global Seafood Technologies Inc | 1.18 | -1.51 | -0.71 |
| CSKD | China Skyrise Digital Service Inc | 0.11 | -0.08 | -0.07 |
| CYF.V | Canyon Creek Food Company Ltd | 69.81 | 0.89 | 0.01 |
| IOMT | Isomet Corp | 0.17 | -0.27 | -0.24 |
| RCHN | Rouchon Industries Inc | 0.13 | 0.01 | 0.01 |
| SMEV | Simulated Environment Concepts Inc | 0.88 | -1.35 | -0.73 |
| SNF.V | Sunora Foods Inc | 0.01 | 0.02 | 0.02 |
| TERA | Gulf & Western Company Inc | 59345.55 | -0.63 | 0 |
| VULC | Vulcan International Corp | 23.06 | 0.46 | 0.02 |
| Low | High | |
| Unlevered beta | -0.06 | 0.01 |
| Relevered beta | -0.04 | 0.01 |
| Adjusted relevered beta | 0.3 | 0.34 |
GSFD'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 GSFD:
cost_of_equity (6.00%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.3) + 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.