HFFG WACC - Weighted Average Cost of Capital

The WACC of Hf Foods Group Inc (HFFG) is 9.3%.

The Cost of Equity of Hf Foods Group Inc (HFFG) is 8.90%.

The Cost of Debt of Hf Foods Group Inc (HFFG) is 10.05%.

	Range	Selected
Cost of equity	7.50% - 10.30%	8.90%
Tax rate	2.10% - 3.70%	2.90%
Cost of debt	4.50% - 15.60%	10.05%
WACC	6.0% - 12.6%	9.3%

WACC

HFFG WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	4.6%	5.6%
Adjusted beta	0.79	0.98

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.50%	10.30%

Tax rate	2.10%	3.70%
Debt/Equity ratio	0.92	0.92
Cost of debt	4.50%	15.60%

After-tax WACC	6.0%	12.6%


Selected WACC	9.3%

HFFG'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 HFFG:

cost_of_equity (8.90%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.79) + 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.