The WACC of iFresh Inc (IFMK) is 7.0%.
Range | Selected | |
Cost of equity | 1806.2% - 3524.9% | 2665.55% |
Tax rate | 8.8% - 24.6% | 16.7% |
Cost of debt | 7.0% - 7.0% | 7% |
WACC | 7.2% - 6.9% | 7.0% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 391.81 | 628.57 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 1806.2% | 3524.9% |
Tax rate | 8.8% | 24.6% |
Debt/Equity ratio | 2148.13 | 2148.13 |
Cost of debt | 7.0% | 7.0% |
After-tax WACC | 7.2% | 6.9% |
Selected WACC | 7.0% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
IFMK | iFresh Inc | 2148.13 | -36.36 | -0.02 |
ANCSQ | American Consumers Inc | 1.44 | 0.94 | 0.41 |
ATD.B.TO | Alimentation Couche-Tard Inc | 0.23 | 0.92 | 0.76 |
CASY | Caseys General Stores Inc | 0.13 | 0.49 | 0.44 |
CLIQ.TO | Alcanna Inc | 0.72 | 1.55 | 0.95 |
NGVC | Natural Grocers By Vitamin Cottage Inc | 0.05 | 0.6 | 0.57 |
NWC.TO | North West Company Inc | 0.18 | -0.17 | -0.15 |
OG.V | Organic Garage Ltd | 3.49 | 1.01 | 0.25 |
RUM.V | Rocky Mountain Liquor Inc | 2.58 | -0.14 | -0.04 |
SFM | Sprouts Farmers Market Inc | 0 | 0.75 | 0.75 |
VLGEA | Village Super Market Inc | 0.16 | 0.4 | 0.35 |
Low | High | |
Unlevered beta | 0.35 | 0.44 |
Relevered beta | 584.3 | 937.67 |
Adjusted relevered beta | 391.81 | 628.57 |
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 IFMK:
cost_of_equity (2,665.55%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (391.81) + 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.